Comcast chases enterprise clients with new unit

US cable giant Comcast (NASDAQ:CMCSA) has created a new Enterprise Services unit to target Fortune 1000 companies.

US cable giant Comcast (NASDAQ:CMCSA) has created a new Enterprise Services unit to target Fortune 1000 companies.

Enterprise services represents a potential growth opportunity for cablecos, which are increasingly suffering from “cord cutting” by residential customers replacing cable packages with cheaper online video streaming services.

The new unit, which will fall within the Comcast Business division, will provide nationwide managed broadband, ethernet, voice, router, business continuity and WiFi services. 

Glenn Katz, former CEO of satellite-based data network service provider SpaceNet will lead the new unit.

Comcast Business, which focuses on small and medium-sized businesses, said it has already signed large customers from sectors including financial services hospitality and retail.

According to Comcast Business president Bill Stemper, “Large companies need a provider who can help them manage complex networks, develop business continuity plans and integrate cloud-based applications,” he said. “Our entry into this segment of the market will introduce new innovation and choice.”

Enterprise Services will compete with the likes of AT&T and Verizon Communications for a piece of the US managed service market, which IDC says is due to grow from US$29bn in 2014 to US$52bn in 2019.

To help it support larger corporates, Comcast Business recently acquired technology deployment and managed services firm Contingent Network Services, and inked network agreements with other cable operators to enable nationwide coverage.

Comcast Business claims to have an annual run-rate of more than US$4.5bn, making it one of its fastest-growing divisions.

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