Cox Biz Enters The $1 Billion Club

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It took Cox Business about
a decade to generate $1 billion in annual
revenue, a milestone it is expected
to cross this week, but the commercialservices
arm of Cox Communications
is making moves to double that performance
in about half that time.

Cox Business has been a pioneer in commercial
services — it was one of the first to
the residential-telephony game in the late
1990s, and built off that expertise to aggressively
attack the small-business market in
2000. At $1 billion in annual revenue, Cox
Business is now on par with much-larger
MSOs, like Comcast, which is four times the
size of Atlanta-based Cox.

The company has said it is on a path to
double its annual commercial revenue to $2
billion within six years.

In an interview last week, Cox Business
vice president of product development and
management Kristine Faulkner said that
the commercial unit is continuing that aggressive
stance, making headway with larger
enterprise customers (companies with
100 or more employees) and has carved out
a strong niche in wholesale services, such as
last-mile and cellular backhaul services.

Carrier wholesale revenue is currently
about $100 million annually, or 10% of total
yearly revenue. Faulkner estimated that
about 50% of the growth in that segment is
from cellular backhaul . She predicted the
total revenue opportunity for the wholesale segment in its franchise areas, currently at about $300 million, could grow to $500 million over the next
few years.

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