Angelakis: Big Opportunities in Commercial


Comcast chief financial officer Mike Angelakis was bullish on the potential for commercial voice and data for the nation's largest MSO, adding that it could represent a $20 billion to $30 billion revenue opportunity over time.
Speaking at the Bank of America Merrill Lynch Media, Communications and Entertainment conference in Newport Beach, Calif., Angelakis said the Philadelphia-based MSO already is on track to generate about $1.2 billion in revenue from small business customers (those with 20 employees or less), a segment that has been growing at a rate of 40% to 50% quarter over quarter. Comcast recently has expanded that focus to include medium sized businesses (companies with 20 to 250 employees), which the company has identified as a $10 billion to $15 billion opportunity.
"We are moving as fast as we can, we are hiring literally hundreds of people, we are investing capital, and we are deploying technology. I think we have things like Metro E[thernet] available in 11of our markets and we are just starting to sell these kinds of products. That market we estimate is about a $10 billion to $15 billion market and we have nascent revenue. But we know that will grow nicely."
The CFO added that the long-awaited NBC Universal joint venture should close by the end of the year and that integration efforts are underway. He added that as the closing date nears Comcast is encouraged by the rebound of the advertising market - which should help NBCU's cable and broadcast networks - and potential opportunities in advanced advertising and cross-promotional activities between networks.
"People ask me all the time, today middle of September how do you feel compared to Dec. 3 when you signed the deal," Angelakis said about the NBCU transaction. "I think that our organization is very excited. I think we've had some real fortunate breaks with the advertising market coming back a bit, which has helped NBC and helped our programming assets. I feel good about that. The financing markets have also helped. We've done some financing at below our pro forma, that's really been helpful. I feel very confident that this is going to work out just fine for us."