Product aimed at small businesses
Altice USA (ATUS) recently launched a new Wi-Fi product for its business customers. The product, known as SMART WiFi, is a managed Wi-Fi service aimed at small businesses. It’s designed to help businesses with functions such as marketing and customer management.
For example, a restaurant could use Altice’s SMART WiFi service to learn more about customers who use their Wi-Fi networks at the store to develop more effective marketing campaigns or encourage repeat visits.
Altice’s venture into the managed Wi-Fi solutions business comes shortly after its competitor Comcast (CMCSA) expanded in the space with the purchase of Wi-Fi solutions provider Deep Blue. Based out of New York, Deep Blue provides managed Wi-Fi solutions and caters to industries such as retail, hospitality, and entertainment.
Yelp (YELP) is also into the managed Wi-Fi solutions market, where it provides Wi-Fi–based marketing services to restaurants.
Altice enters the $6 billion Wi-Fi solutions market
The managed Wi-Fi solutions market presents an attractive revenue opportunity. The global managed Wi-Fi solutions market was valued at $3.1 billion in 2017 and is projected to nearly double to $6.1 billion by 2022, according to Research and Markets.
Altice generated revenue of $2.4 billion in the first quarter, representing an increase of 2.9% YoY (year-over-year). Revenue rose 5.1% YoY at Charter Communications (CHTR) but fell 9.0% YoY at Dish Network (DISH) in the first quarter.
Revenue in Altice’s business services arm rose 5.3% YoY in the first quarter, faster than its company-wide growth.