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Of course, the market size shown above presents a static picture of the markets in question. The communications industry is an expanding pie with new customers and new opportunities continuously emerging. Figures 2 and 3 below present the respective growth trends of the cable and telecom sectors.
Ultimately, the two factions will continue battling on two fronts. Specifically, each will go head-to-head for residential and business customers. Currently, the vast majority of cable companies' revenue is derived from residential users. These providers' collective inexperience in the business services arena is
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Competition from cable companies providing voice services is one factor that continues to rise in importance. |
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reflected in Figure 4 below. While business users represent just four percent of their current customer base, this doesn't represent a weakness, as it is due to CATV's history and initial markets. Rather, this skewed customer mix represents a significant emerging opportunity - one that cable companies are beginning to attack.
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