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Frost & Sullivan: Time Warner Cable Business Class Is The Primary Network Service Provider Of Choice For U.S. Business Communications Executives

Stocks in this article: TWC

MOUNTAIN VIEW, Calif., Feb. 6, 2013 /PRNewswire/ -- On the basis of Frost & Sullivan's independent research, 2012 United States Business Connectivity Services User Survey, Time Warner Cable Business Class emerged as the company with the highest loyalty in the primary network service provider category among surveyed U.S. business communications executives.

"Frost & Sullivan's survey of U.S. telecom and network decision makers revealed that current business customers of Time Warner Cable Business Class are less likely to switch to another network service provider compared to customers of its nearest competitors," said Frost & Sullivan Research Analyst Karolina Olszewska. "In fact, more than eight out of 10 Time Warner Cable Business Class customers are not at risk of switching."

In this highly competitive market, the top factors influencing switching behavior are price-related. Furthermore, customer support/care is also a strong factor that could impact switching behavior. Even though 83 percent of current customers of Time Warner Cable Business Class are categorized as "low risk" of switching, Time Warner Cable Business Class has to keep a sustained effort to retain customers since the market is crowded with strong incumbent, regional and competitive local exchange carriers (ILEC, RLEC and CLEC) and compelling product portfolios.

"Keeping price points competitive will likely be an ongoing challenge for the company in this increasingly crowded industry," stressed Olszewska.

Even though network service provider selection still leans toward the large ILECs, they are no longer the default choice, or even preference, for multi-site small, mid-market and even some large local businesses. Instead they prefer multi-system operators (MSOs) like Time Warner Cable Business Class' which has national networks comprising an optical fiber core network, metro fiber networks and dense local hybrid fiber-copper access infrastructure, over which it is offering an expanding range of Ethernet-based network solutions.

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