Channel Partners

SEP-OCT 2013

For 25 years, Channel Partners has been a resource for indirect sales channels, such as agents, VARs and dealers, that provide network-based communications and computing services, associated CPE and applications, and managed and professional services

Issue link: http://digital.channelpartnersonline.com/i/160449

Contents of this Issue

Navigation

Page 19 of 55

> SOLUTIONS <<<<<<<<<<<<<<<<<<<< By kHalI HENdERsON CABLE SHARE OF CHANNEL REVENuE CLIMBS C hannel revenue from the sale of cable telecom services to businesses is small but growing, according to the third annual Channel Partners survey, "Cablecos & The Channel: State of the Market 2013," published in July. Nearly three-quarters of (see chart 2). Compared to channel partners responding 2012, fewer (56 percent vs. 73 to the survey said cableco percent) expect their revenue DISCUSS revenue was 1-10 percent of to remain in the 1-10 percent ON TWITTER: their annual revenue in 2012; range, while more (24 percent #cable this compares to only half in vs. 13 percent) expect it to #ethernet #Internet the previous two years (see be in the 11-20 percent range. #telecom chart 1). Furthermore, while The number that expect it to 25 percent of channel partners be in the 21-30 percent range said they earned no revenue from cable more than doubled year over year, from 6 in 2011 or 2010, only 7 percent said the percent to 15 percent. same for 2012. In addition, there are some Similarly, the share of channel partners' signs that cable is contributing a growing revenues from cable telecom services is share of revenue with 13 percent saying expected to increase over the next five it accounts for 11-20 percent in 2012, years through 2017. Revenue is expected compared to only 8 percent in 2011. to shift up until 2016, when one in four In 2013, channel partners expect partners expects cable to bring in 11-20 revenue from cable services to account percent of revenue; a similar number for increasing portion of their revenue expect it to bring in 21-30 percent. One in 1 2 five channel partners expects more than 30 percent of their revenue to come from cable services by 2016. Those numbers are projected to hold steady through 2017. Keep in mind that these are estimates from partners themselves. Past years' predictions have fallen short of expectations. However, they are a good indication that partners are bullish on the prospects for continued success selling cable services. Khali Henderson is editor-in-chief of Channel Partners. @khalihenderson linkedin.com/in/khalihenderson MORE INFO Get your copy of the report, "Cablecos & The Channel: State of the Market 2013" from the Channel Partner's Resource Center at channelpartnersonline.com/resource-center. Channel Partners' REPORTED REVENuE Percentage From Selling Cable Business Telecom Services — 2010-2012 Source: Channel Partners' Cablecos & the Channel: State of the Market surveys, June 2011, July 2012 and June 2013 2012 7% 25% 29% 73% 56% 53% None 1-10% Channel Partners' REVENuE FORECAST From Selling Cable Business Telecom Services — 2012-2017 Source: Channel Partners' Cablecos & the Channel: State of the Market survey, June 2013 20 ChaNNel paRTNeRs SEPt/OCt 2013 2011 2010 13% 8% 9% 6% 5% 6% 2% 6% 3% 11-20% 21-30% 31%+ 2012 actual 2013 (est.) 2014 (est.) 2015 (est.) 2016 (est.) 2017 (est.) 7% 0% 0% 0% 0% 0% 73% 56% 37% 36% 26% 27% 13% 24% 33% 24% 26% 27% 6% 15% 18% 18% 26% 25% 2% 5% 11% 21% 21% 22% None 1-10% 11-20% 21-30% 31%+

Articles in this issue

Links on this page

Archives of this issue

view archives of Channel Partners - SEP-OCT 2013