The outlook for North American cable Multiple System Operators (MSOs) is increasingly bright. A commitment to a triple play of services (video, voice, data) combined with declining CAPEX outlays should enable top line growth of 12-14%, as well as improve margins and returns on invested capital. Competition from Direct Broadcast Satellite (DBS) providers remains a key concern and is accelerating the MSOs' adoption of new services. Although not moving in lock step, industry roadmaps are increasingly clear around network based VOD services and IP based residential voice as near term vehicles to stem subscriber churn to satellite and drive organic growth.
Commercial services remain a nascent, but important growth opportunity for the MSOs and several are increasingly focusing resources here. Industry consolidation is likely to continue, but the pace will be tempered by high debt levels that constrain flexibility. Free cash flow focus continues to strain MSO CAPEX budgets. Cable experts from Cisco's Internet Business Solutions Group continue to team with cable operators to build businesses in commercial services and IP Telephony, as well as helping them web-enable their cable operations.
Outside North America, too, cable operators and IPTV providers — whether using coaxial, DSL, or fiber technologies -- can leverage Cisco’s breadth and depth of experience in practical operating environments which necessitate selecting the business strategies and appropriate supporting technologies to enable successful positioning, deployment, and operations.
