While U.S. MSOs may generate more than $7 billion in annual revenues this year while via business services, they may start seeing a decline in numbers due to competition from entrenched telco providers. According to The Insight Research Corporation, cablecos will gain some market share, but they will remain small players in a big industry with low margins and little cash flow. "While their legacy in providing services to residential segments may give them confidence they can grow profitably in this adjacent segment, the cable operator’s challenges will be steep and growth is dependent upon taking market share from entrenched players" says Fran Caulfield, research director. "Our study concludes that, despite these obstacles, cable operators will forge ahead and the entrenched telco providers will likely respond with investments, price, and improved performance to combat this threat.”

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