Comcast Business extends Dedicated Internet Access (DIA) to 1M new businesses
Here’s more coverage of other key stories on Ethernet and business services:
- AT&T continues its U.S. Ethernet dominance
- Lumen is driving network expansion to build the backbone of the AI economy
- Comcast Business’ revenue base is approaching $10 billion.
- Comcast Business’ Nitel acquisition enhances its managed networking capabilities
- VMware takes over the top spot from Cisco on VSG’s SD-WAN technology LEADERBOARD
Comcast Business plans to expand its Dedicated Internet solution to 1 million new business locations, threatening incumbent Ethernet providers like AT&T and Lumen, which have long enjoyed dominant positions in the business services market.
The service provider said the move is part of a broader $80 billion investment in network innovation over the last decade to satisfy business customers' needs for DIA services.
A key element of the DIA service drive is its focus on delivering symmetrical speeds with SLAs, whether over fiber or its existing HFC cable network.
Comcast Business is stepping up network monitoring in tandem with symmetrical speeds. Business customers can access enhanced symmetrical speeds – up to 200 Mbps over HFC and 400 Gbps over fiber.
The cable MSO is leveraging AI and cloud to proactively manage network performance, addressing potential issues before they impact customers. These enhancements extend to Comcast Business’s entire portfolio of Ethernet Transport solutions and allow it to bring new capabilities to more businesses.
“As Comcast continues to enhance the network, we plan to expand Dedicated Internet to more than three times as many additional businesses in the coming year,” said Christian Nascimento, Senior Vice President, Connectivity and Digital Customer Solutions, Comcast Business.
Enhancing on-net fiber reach
Comcast will enhance its fiber connections to more business buildings to meet this demand.
Cable providers continue to scale their on-net fiber reach overall.
According to Vertical Systems Group’s year-end 2023 U.S. Fiber Lit Buildings LEADERBOARD, cable providers significantly grew in net new fiber lit commercial buildings during 2023.
Comcast Business took over the fourth position at that time, displacing Lumen, which dipped to fifth overall. Lumen lost a share in the on-net fiber segment due to its spinoff of assets to Brightspeed.
“This expansion dramatically broadens our lit-building footprint and allows us to deliver enterprise-grade connectivity far more rapidly and cost-effectively,” Nascimento said.
Scaling business services
Joining Cox and Spectrum Enterprise, Comcast ranks as one of the top cable MSOs in the business services and Ethernet services space.
Evidence of its growth was seen during its fourth quarter earnings report.
Increased revenue from enterprise solutions offerings and small business customers, driven by higher average rates, drove Comcast Business Services Connectivity revenues in the fourth quarter to $2.45 billion, up 3.7% year over year.
Jason Armstrong, Comcast's CFO, said Comcast Business has grown into a multi-billion-dollar unit for the cable MSO.
“Business Services has been growing at an industry-leading mid-single-digit rate, with a total revenue base approaching $10 billion and a margin of nearly 57% as of year-end,” he said.
What is DIA?
Dedicated Internet Access (DIA) is a private, high-speed internet connection for businesses. It is a premium service that is more expensive than shared broadband internet. The service is delivered via Ethernet, private-line circuits, dedicated fiber, T1 lines, or other high-capacity connections. It is backed by service-level agreements (SLAs) that ensure the internet service provider meets performance metrics.
DIA rising
Comcast Business’s timing for the expansion coincides with DIA's becoming a key growth driver in the U.S. Ethernet services market.
Ethernet services continued to grow throughout 2024. According to VSG's latest Ethernet LEADERBOARD, the total U.S. base of retail Ethernet ports grew by 2.2%.
The research firm said that Ethernet DIA will increase at a double-digit CAGR between 2024 and 2029.
Likewise, gigabit speed services are powering the expansion of the U.S. Ethernet market and propelling demand for new fiber deployments.
Various applications, such as AI and GenAI, Cloud, Data Center, and Managed SD-WAN/SASE services, which all need Ethernet connectivity, are driving this growth.
For related articles, visit the Business Topic Center.
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Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.