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Cablevision Lunches Video Conferencing Service

Zacks Equity Research

Leading U.S. cable multi service operator (MSO), Cablevision Systems Corp. (CVC) recently introduced video conferencing services under its flagship Lightpath line of managed services. Lightpath provides Ethernet-based data, Internet, voice and video transport and managed services to business enterprises. The newly launched cloud-based video conferencing service will primarily target mid-to-large sized business organizations.

Lightpath video conferencing will provide system design, installation, and virtual meeting room services which will enable business enterprises to connect with a maximum of 25 persons at a time throughout the world and from any devices including desktops, smartphones and tablets.

Users will be able to share files and content much faster than any other traditional video conferencing means. The whole system will be based on Cablevision’s strong fiber-based network. Cablevision currently carries a Zacks Rank #2 (Buy).

The business enterprise segment has become a significant growth opportunity for the cable TV industry. Considerable improvement in business data and video traffic is expected to act as a growth catalyst for the industry. We believe Cablevision is also poised to gain significantly from this opportunity.

During the first quarter of 2014, Cablevision introduced an innovative 100 Gbps Optical Transport service. Of late, large business enterprises are focusing to expand their 10 Gbps architecture. Cablevision intends to capitalize on this opportunity with 100 Gbps offerings.

Meanwhile, the video conferencing market has become highly competitive. Cisco Systems Inc. (CSCO), Polycom Inc. (PLCM) and Logitech International SA (LOGI) are major players in this arena.

However, to Cablevision’s advantage, while all companies offer video conferencing as a standalone service, Cablevision will provide video conferencing as a fully managed feature bundled with its existing Lightpath managed service offerings.

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