Friday, April 08, 2005

Cable going Wi-Fi

Comcast Corp., Time Warner Cable and Charter Communications are all trying out ways to turn the promising Wi-Fi business into a profitable one for them. The three cable companies are striking deals to offer hot-spot service in public locations to their high-speed data subscribers and prospective customers. The moves follow the launch of aggressive Wi-Fi "roaming" offerings to DSL customers by such telco rivals as SBC Communications. The big question is whether hot spots will become sweet spots for the cable industry. Although the Wi-Fi business is full of promise, it has struggled to find a firm financial footing because hot spot coverage and ownership are quite fragmented and many consumers expect the service to be free. Nevertheless, cable operators, under mounting competitive pressure from phone companies, wireless ISPs (WISPs) and even some municipalities to expand into wireless, increasingly believe they need to make a move. "I hope that all MSOs realize that wireless is an opportunity and a risk," said Chuck Sweeney, vice president of business solutions for Time Warner Cable's Houston division. "They need to evaluate it."

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