Business Revenue Driving ILEC Growth

There is an interesting pattern shaping up in first quarter financial reports from U.S. independent local exchange carriers, namely that revenue growth is strongest in the business customer segment.

In Windstream's first quarter of 2012, business revenue was $897 million, while consumer revenue was $338 million. In other words, business revenues were 73 percent of total revenues. Other telcos that once were more known for operating rural telephone exchanges, such as Frontier Communications, likewise generate more than half their revenue from business customers.

In the U.S. cable industry, services for business customers likewise represent the highest-growth potential, not services to consumers.