Wednesday, May 7, 2008

Cable Ops To Form Wireless Broadband JV

Major cable companies Comcast, Time Warner, and Bright House may have ended one partnership with Sprint, but they are investing in another. In a deal valued at over $12 billion, cable is joining Sprint and Intel to invest in a new wireless venture designed to offer video, hi speed, and mobile.

SO the question to ask is does this make cable competitive with telco in the wireless spectrum - OR - does this create a monopolistic, national wireless pipeline that might require governmental oversight?

From the article, "“This [Clearwire] is going to be completely different,” the executive said, adding that each operator will determine on its own how the product will be priced, branded, and when and where each rollout will take place." Each cable entity will uniquely decide how to use this national highway in its pricing, packaging, positioning message to consumers. As a wireless venture, there are no physical boundaries; is this really possible, or is this rhetoric. Just wondering.