
Please try another search
Large telecom operators are yet again eyeing the small and mid-sized business (SMB) service market to reclaim their long-lost glory. In the last eight to ten years, the SMB segment has become a major growth driver for the cable MSOs (multi service operators) and regional communications service providers, who have sidelined telecom operators using high-speed metro Ethernet link over the traditional T1 and DSL link.
Meanwhile, significant improvement in the business data and video traffic is expected to act as future growth catalyst for the overall telecom industry. Various industry researches estimate that the SMB segment may offer a market opportunity of $20-$30 billion in the long-run. This massive market opportunity may encourage telecom giants to restructure their SMB market strategy.
U.S. telecom behemoth Verizon Communications Inc. (NYSE:VZ) has launched a new video service, Fios Current TV, targeting the SMB segment, especially health clinics, consulting firms, restaurants, health clubs, bars, and cafes. Verizon offers two categories of services to its SMB customers, $40 per month without a contract and $30 per month with a two-year agreement. Additionally, the company is offering Current TV at $25 per month for SMB customers ordering a triple-play bundle with a two-year agreement.
Comcast Corp. (NASDAQ:CMCSA) , the largest cable MSO (multi service operator), is aggressively establishing its footprint in the SMB market with next-generation DOCSIS 3.1 near-gigabit broadband speeds and targeted programming. At present, Comcast is the market leader in triple-play services for the SMB segment.
Notably, Verizon offers fiber-optic based FiOS TV services to its residential customers. This service is similar to that of cable TV operator’s traditional video offerings. Currently, the company is on the verge of carrying out test trial runs for its IPTV upgrade. In 2015, the company launched go90, a YouTube-like streaming-video service for teenagers. However, the company is planning to merge go90 into its digital platform Oath.
Moreover, the telecom industry is currently abuzz with rumors of Verizon unveiling its much-hyped online TV streaming service by next spring. The new online video streaming service will be different from the previous two offerings as it will compete with established low-cost services like Netflix Inc. (NASDAQ:NFLX) and Amazon.com Inc.’s (NASDAQ:AMZN) Prime video.
Price Performance
Shares of Verizon have gained 8.09%, outperforming the industry’s growth of 1.97% over the last 90 days. Also, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
The markets have been sluggish this week as investors hope for a jolt later in the week when AI juggernaut NVIDIA Corporation (NASDAQ:NVDA) reports fourth quarter and year-end...
On Friday, a wave of selling pressure swept across the US equity markets, leaving a trail of losses. The S&P 500 closed down 1.7%, the DOW slid 1.69%, and the NASDAQ tumbled a...
Palantir remains highly valued with a 460x P/E ratio and a 42.5x P/B ratio, far above its peers. The stock's beta of 2.81 signals high volatility, meaning sharp moves in both...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.