Time Warner Cable Focuses on CE 2.0 - Analyst Blog
11 February 2014 - 8:55AM
Zacks
Time Warner Cable Inc. (TWC), the second
largest cable multi-service operator (MSO) in the U.S., has
recently become the first Ethernet service provider in North
America to receive certification for all six of the Metro Ethernet
Forum (MEF) 's Carrier Ethernet 2.0 business service classes. This
reflects the company’s relentless focus on the metro Ethernet
business.
Apart from Time Warner Cable, only two Ethernet service
providers, namely, Philippine Long Distance Telephone Co. and
PT Telekomunikasi Indonesia Tbk. (TLK), have
gained official Carrier Ethernet 2.0 recognition for all the six
retail business service standards.
However, these companies primarily function as telecom operators
whereas Time Warner Cable is a major cable TV operator. Currently,
Time Warner Cable has a Zacks Rank #2 (Buy).
In the U.S., large cable TV operators and telecom companies such
as, Comcast Corp. (CMCSA), AT&T
Inc. (T), Fibertech Networks LLC and some other vendors
are also emphasizing on metro Ethernet. However, none of them have
received Carrier Ethernet 2.0 certification for all six
standards.
Metro Ethernet service is part of Time Warner Cable’s Business
Services division. This division has become a major growth driver
for all cable MSOs. In 2013, the company generated $2,312 million
revenues, up 21.6% year over year.
Time Warner Cable has undertaken a massive "Ethernet Everywhere"
strategy and is boosting cloud computing services including
delivering IP-based Ethernet services over fiber, where it has
already laid its optical cables and has used high-speed DOCSIS 3.0
technologies over its extensive hybrid fiber/coax plant.
The company decided to acquire a regional fiber-optic network
company, DukeNet Communications LLC, for $600 million in cash. The
deal is expected to close by the first quarter of 2014, subject to
customary regulatory approval. DukeNet has an extensive fiber-optic
network of more than 8,700 miles across North and South Carolina
and five other states in southeastern U.S.
DukeNet offers data and high-capacity bandwidth services to
wireless service providers, data centers, government and enterprise
customers. The proposed acquisition of DukeNet is likely to
strengthen the Business Service division of Time Warner Cable.
COMCAST CORP A (CMCSA): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
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