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Study: MSOs Set to Do Business

6/13/2002 8:33 AM Eastern

While it hasn't been cable's strong point historically, research firm The
Yankee Group thinks recent technology tweaks have positioned MSOs to make
healthy gains in the business-services market.

With cable operators showing increasing interest in extending their
residential coaxial networks to reach business customers, start-up companies
including Narad Networks Inc. and Advent Networks Inc., as well as longtime
vendor Arris, have begun offering products that deliver large-bandwidth
dedicated access.

While there are several flavors, these technologies all bank on existing
networks, cutting the need for expensive line extensions to business customers,
according to the report.

MSOs are particularly interested in reaching small and midsized business
customers that have been somewhat overlooked by major incumbent Bell operators
for communications services. That will likely fuel further development of
products that can deliver hefty multiservice bandwidth, the report
concluded.

'Considering the MSOs' increasing need for cost-effective large-bandwidth
solutions, it is clear that this will be an area of growth for the broadband
sector,' analyst Lindsay Schroth said.

September