Comcast Corp. (CMCSA), the largest cable MSO of the world, recently completed its proposed acquisition of Cimco Communications Inc, after receiving FCC approval. Cimco is a privately held competitive local exchange carrier in the Chicago area with more than 23,000 customers in the small & medium sized (SMB) commercial business segment. The FCC cleared Comcast for taking over all of Cimco’s operations except Detroit region.
In addition to bringing in a new base of customers, Cimco will give Comcast some innovative engineering, customer service, and operations, specifically designed for the mid-range business services market. Cimco has strategic relationship with some industry leading original equipment manufacturers like Cisco System Inc. (CSCO), Alcatel-Lucent (ALU), and Adtran Inc. (ADTN).
Various industry researches estimate SMB segment of having a $30 billion market opportunity. Despite being a late entrant in this segment, Comcast is quickly gaining strong foothold in the market. Management estimated approximately $2.3 billion of annual revenue from this segment alone by 2012.
Comcast has already launched its next-generation high-speed voice and Internet service for SMB segment. Leveraging on the DOCSIS 3.0 platform, this new service will provide downstream speeds of 100 Mbps and upstream speeds of 15 Mbps for a price of $369.95 per month.
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