Cablefax The Magazine - July 2016 - 8
2016 Top Ops Awards
MSO BUSINESS SERVICES INNOVATION
Cox Business
While cable operators are relatively late comers to the enterprise
market, they continue to squeeze more revenue out of the sector.
When Cox Business was created in 2000, it was among the fi rst
cable MSOs to enter the market, with about $100 million in revenue
in 2000. Since then, it has quickly grown.
After reaching the $1 billion annual revenue mark at the end of
2010, the unit is on track to pass $2 billion by the end of this year.
Small businesses have been the company's sweet spot: around
80 percent of its 350,000 business customers are small. And this
segment is still going strong. For this year alone, Cox expects to add
60,000 new small business relationships, says Steve Rowley, SVP of
Cox Business.
In the mid-sized business space, Cox Business has seen signifi cant
growth in hosted voice services. It has gone from little revenue
three years ago to potentially reaching $50 million this year. And in
the enterprise space, the company has focused on vertical markets,
including healthcare, hospitality, fi nance, government and education.
In the education market, Cox Business serves more than 50 percent
of the schools within its network reach, more than 5,800 schools
and libraries with nearly 4.2 million students. It provides Gigabit
speeds to several school systems nationwide. Looking at hospitality,
Cox has successfully expanded its reach beyond the traditional hotel
space to the arena and convention center space. In December, Cox
Business scored a contract with the Las Vegas Convention Center,
the site of the CES trade show, to provide Internet connections. AT&T,
Sprint and a third wireless carrier have signed on to launch wireless
services powered by Cox on a distributed antenna system. This year,
Cox partnered with MGM to provide fi ber network and WiFi access in
the T-Mobile arena in Las Vegas.
Meanwhile, Cox's carrier business generates about $200 billion in
revenue. It works with all the major carriers on backhaul, small cell,
and wholesale services providing last mile connectivity. " Data connectivity
is still the driver... That continues to be the anchor for all of
our businesses, " says Rowley. Looking at changes in the large enterprise
space, Cox is " seeing rapid and large demand for fi ber-based
solutions... We are seeing more sophisticated Internet solutions. "
And as the evolution of cloud services becomes more prevalent,
" the need for larger connectivity for data centers and other hosted
environments have become more important. " That's also true in the
mid-sized business space as companies adopt more bandwidthintensive
services.
All the changes have helped cable MSOs grow in the business market,
Rowley says. In the next fi ve years, cloud services will continue
to grow quickly, creating revenue opportunities in data centers. The
exec also sees security as another growth potential, with Cox just
coming off of a trial integrating it with business offerings.
8
cablefaxmag.com
Stadium Play: Cox Business VPs Jeff Breaux and Derrick Hill celebrate
the opening of Las Vegas' T-Mobile Arena, powered by 10G
fiber and 550 WiFi hotspots from Cox Business.
Idea Pitch: Cox Business leaders and panelists recognize #GetStartedOmaha
winner Borrow for Your Bump, one of 21 small business
pitch events the company has hosted.
FAST FACTS
uCox first began serving businesses in 1993, first
among MSOs.
uCox Business was officially formed as a separate business
unit in 2000 ($100 million in revenue), hit $1 billion
in revenue in 2010 and will exceed $2 billion in 2016.
uIn 2013, Cox Business began a series of events called
Get Started in partnership with Inc. magazine. It is a platform
for start-ups and small businesses to pitch ideas in
front of a panel of experts for an opportunity to win cash
and technology. Cox Business has completed 21 events
and given away more than $300,000 in cash and prizes.
July 2016
Cablefax: The Magazine
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Cablefax The Magazine - July 2016
Table of Contents for the Digital Edition of Cablefax The Magazine - July 2016
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