Comcast Corp sets up new enterprise business unit

US cable and internet provider Comcast Corp today said it ha set up a new business services division for selling, Wi-Fi, ethernet and other services to large companies in the Fortune 1000 list, aimed at expanding revenue.

The new "enterprise services" unit would be under its Comcast Business division, which currently offered services to small-to-medium businesses Comcast's said.

Catering to larger corporates would enable Comcast to take on rivals in the business services market, such as AT&T and Verizon Communications Inc.

Unlike residential customers who might switch to satellite or telecom service providers, businesses typically entered into long-term contracts, bringing in steady sales.

Furthermore, the push towards an expansion in the business sector reflected how cable companies were searching for new growth with the maturing of their traditional business, selling TV services to residential clients.

The last six to nine months had seen Comcast sign up 25 to 30 customers with $45 million in contracts, Bill Stemper, president of Comcast Business, said in an interview.

He added big banks were included in the list though he gave no details.

Comcast, the largest US cable operator, reported business services revenue, which includes sales to companies of broadband internet, voice lines and network services, of $4 billion in 2014, up 22 per cent from a year earlier. Its cable business was up 1.2 per cent last year to $20.8 billion.

Reuters quoted Stemper as saying, "We have that $1 billion mark in our mind" for the new enterprise services unit. "In five to six years (the unit) should be starting to get to that level," Reuters reported.

Comcast had signed up about 40 customers so far, including several Fortune 1000 companies in the banking, retail and hospitality industries.

Though the company did not disclose customer names, it said one of its largest contracts generated about $350,000 per month in revenue.

Since 2007, Comcast had sold internet, TV and phone service to small and mid-size companies, many with less than 500 employees.

A number of its biggest customers were hospitals.

It had been among the fastest growing parts of Comcast's business, generating about $4 billion in revenue last year.