Cable Thinking Small

For the past year, the telecommunications world has touted the small-business market as the next hot arena. Thousands of firms are cropping up, say industry watchers, and many need Internet access.

How do they get online? How should they develop their Web sites? How can they get into electronic commerce?

With such questions frequently asked, it’s not surprising that the cable industry--which has made numerous attempts to get into the telephone business--is trying to snag customers away from the phone companies.

Last week, Cox Communications and a division of the @Home Network launched CoxWork Internet, a service that gives small- to medium-sized businesses high-speed access to the Net through cable modems. (The @Home Network, the largest cable modem venture, is backed by Cox, Comcast Corp., Tele-Communications Inc. and several other cable affiliates.)

The service is available within Cox’s coverage area in Orange County, San Diego and Phoenix.

“Why should the telecos have the small commercial market to themselves?” asked Don Hutchison, senior vice president and general manager for the venture. “We have 50 business customers using the service so far, and expect a lot of people to follow.”

But the competition for small-business dollars is heating up among other cable firms. Time Warner Inc. and MediaOne Inc. are also devising programs for businesses, some with deals for large- and medium-sized ventures.

But analysts warn that even cable solutions come with some of the same problems faced by the phone companies--namely speed and reliability.

And location is key, because would-be customers are out of luck if their businesses are not situated in the cable company’s service area.

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P.J. Huffstutter covers high technology for The Times. She can be reached at (714) 966-7830 and at p.j.huffstutter@latimes.com