Cox Business Takes Aim at Mid-size Businesses with Managed IP PBX Launch

| Feb 9, 2011 | Voice and Unified Communications Services
| Analyst: Brian Washburn

Event Summary

February 7, 2011 -- Cox Business launched Managed IP PBX+, a managed service based on the Cisco Small Business Communication System (SBCS). Initially launched in Las Vegas and Oklahoma, the service targets businesses with 100 employees or less that have limited IT resources. Features can be shared across up to five networked locations and include four-digit dialing, a PC-integrated toolbar, and softphone support. Cox is the first cable operator to achieve Cisco’s Managed Services Channel Partner Express Certification, which requires partners to demonstrate the ability to deliver and support managed services.

Quick Take

Analytical Summary

• Current Perspective: Moderate on Cox Business’ launch of Managed IP PBX+, based on the Cisco Small Business Communications System (SBCS), in its Las Vegas and Oklahoma markets, because the move adds another IP telephony service option for the carrier’s mid-sized business customers. Cox Business has been well ahead of most cable operator peers in delivering business-class voice and data services to its customer base, providing small and mid-sized businesses (SMBs) with an alternative to services from the incumbent local exchange carriers (ILECs).

• Vendor Importance: Moderate to Cox Business, because Managed IP PBX+ gives the cable operator another way to lure clients away from ILEC competitors and enhance the operator’s appeal to larger businesses. The service is currently only available in two markets, which limits initial customer uptake, although a phased approach gives Cox time to fine-tune delivery and support of the service. Cox plans to expand IP PBX+ into other markets in 2011, as well as planning to enhance its voice services product set further with the launch of SIP trunking later in the year.

• Market Impact: Moderate on the managed IP PBX services market, because although Cox’s initial launch is in just two markets, the operator is taking aim at a potential weak point for telcos. AT&T, Qwest, and Verizon have offered managed IP PBX solutions for years, but these offers are geared to larger enterprise customers. Few of the telcos and independent LECs provide SMBs with an off-the-shelf turnkey managed IP PBX solution geared to the needs and budgets of small businesses.

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Analytical Perspective

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