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Channel Opinions on Cableco Services 2014

Cablecos made noticeable strides in the marketplace this year. According to 2014 market studies, channel partners are turning to cablecos more and more for telecommunications services. Cablecos were seen as particularly strong when it came to fiber-based offerings. In addition, the studies showed that cablecos continue to be true contenders in the industry and it is because of this that the opinion of cablecos continues to change as well.

Satisfaction StudyIn the J.D. Power 2014 Business Wireline Satisfaction Study, cablecos were rated above average in the three market segments surveyed: very small, small-medium, and large businesses.

Satisfaction was measured using the following six factors:• Billing• Communications• Customer service• Performance and reliability• Sales reps and account execs• Service cost

Spectrum Business was rated in the top 4 for the “very small” business segment.

Cablecos and EthernetRick Malone, principal at Vertical Systems Group, said in VSG’s 2013 U.S. Cable MSO Carrier Ethernet Leaderboard, “Cable MSOs headlined the Carrier Ethernet market in 2013 with meteoric growth.” He also noted that, “cable operators were particularly competitive selling metro Ethernet LAN services and Ethernet Internet access.”

By providing competitive pricing and quick provisioning, cablecos are beginning to make strides in the market, especially when it comes to Ethernet VPNs and cloud services.

Important ServicesChannel Partners recently released their fourth annual State of the Market Report. This survey was sent out to the channel in order to gather opinions on how cablecos were perceived in the current competitive market over the last year.

When asked what services they consider most important to growing their business, channel respondents (agents, master agents, VARs, MSPs, et al.) rated the following as their top five:

• Hosted VoIP• Metro Ethernet Services• SIP Trunking• MPLS• Data Center Connectivity

Channel Opinions on Cableco Services 2014

For more information about the Spectrum Business Partner Program, visit our website.

The top 3 ways respondents wanted to use cablecos for were as:• An Internet access provider• A redundant or diverse network provider• A low-cost provider

Channel partners were a little more wary on a cableco’s ability to provide SIP trunking, managed services, and web hosting. However, nearly 75 percent of respondents said that they could purchase POTS, PRI, and Ethernet services from cablecos. Moving forward, cablecos will need to offer more consistent options in the areas where they’re lacking.

Cablecos as Primary vs. Secondary Providers78 percent of respondents said they considered cablecos best as a secondary backup provider, up from 72 percent in 2013. However, more than half also said that they would recommend cablecos as a primary provider when it came to fiber-based services like Ethernet. An issue most respondents had with coax-based services, on the other hand, is the lack of SLAs. But many noted that low pricing helps counteract this.

Pricing and Network QualityWhen it came to providing business telecom services, respondents agreed that cablecos have the advantage over telcos in end-user pricing. The majority of respondents also indicated that in terms of quality, they consider cableco networks to be on par or better than telcos.

Selling Cable ServicesChannel partners have been quoting cable services for their clients in more numbers than last year: 80 percent were making routine quotes, up from 75 percent in 2013.

Of the top cablecos quoted, Spectrum Business has shown the best gains: 58 percent of channel partners quoted their service, a 20 percent increase from last year’s report. These partners also responded that their top reason for adding cable services is the low cost, which translated to better savings for the end user.

Channel partners were also asked their opinions on working with cablecos. Although some noted that there were issues in the beginning, the majority of respondents had a positive experience. This was especially true when working with fiber-based services.

In all, cablecos have overcome most barriers associated with entering a new industry and are proving that they can be competitive, efficient, and reliable partners.

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