For a while, the big satellite TV providers (DISH Network and DirecTV) lacked the ability to be competitive in the multifamily space mostly due to inability to offer a viable Internet solution as part of their offering. In fact, there are still challenges with satellite-delivered Internet solution, such as an increased cost for slower speeds when compared to local DSL and Cable Modem solutions.

As a property owner of an apartment or condominium, it's incredibly complicated to even consider replacing the local cable company with a service provider that strictly offers video, no matter what the rate increases from the local cable company might look like. The most successful multifamily service providers realize this and focus on proposing solutions that offer both Internet and video service as a bundled solution to customers.

Typically the multifamily service provider will purchase Internet bandwidth from the LEC (local exchange carrier) or CLEC (competitive local exchange carrier) and provide that Internet bandwidth to customers directly. In most cases, these services are delivered to customers over coax (cable modem) but Ethernet and Wi-Fi solutions have also found their way into the mix. Any company with a hefty pocketbook can purchase bandwidth and resell it, but it takes a good system and real network management to make a viable solution to the cable company. Cable modem customers have grown accustomed to being able to access the Internet, most of the time anyway. After all, why risk ending up with a worst solution than what you had in the first place.

Due-diligence is the key. Service providers must have the capital, resources, back office systems and call center to serve your residents and address your needs. When evaluating your next provider, keep in mind that almost every video customer will require Internet. Your new provider should have a competitive solution to address this.