In a major move to counter competition from other communications service providers, the three largest cable operators in the U.S. , e.g., Comcast Corp. (CMCSA), Time Warner Cable Inc. (TWC), and Cablevision Systems Corp. (CVC) have entered into an agreement for free Wi-Fi platform sharing.
The cable modem subscribers of all of these three MSOs will now have unlimited access to a fast and free wireless Internet connection at several locations in the New York City region.
The roaming Wi-Fi arrangement strengthens a bunch of WiFi-related activities that are already underway at each operator. Last month, Time Warner Cable entered into a partnership with Cablevision Systems for its Wi-Fi network. Cablevision Systems is particularly strong in the New York metro area with 3 million subscribers.
Comcast has nearly 24 million subscribers in 40 states while Time Warner Cable has 14.6 million customers in New York, the Carolinas, Ohio, southern California and Texas.
Technically, Cablevision Systems used infrastructure gears from both Cisco System Inc. (CSCO) and BelAir Networks Inc for its Optimum Wi-Fi network. On the other hand, both Comcast and Time Warner Cable used Clearwire Corp’s (CLWR) nationwide WiMAX set-up for their mobile broadband networks.
Cable MSOs throughout the U.S. are facing increasing competition from both telecom service providers and satellite TV providers. Wi-Fi connectivity is likely to become a huge opportunity for communications service providers. Several industry sources predicted that Wi-Fi enabled wireless devices like phone, computer, and consumer electronics may cross one billion by 2012.
Telecom giants Verizon Communications Inc. (VZ) and AT&T (T) both have a strong Wi-Fi presence. The recent move by three cable operators is aimed to consolidate their position in this highly competitive market.
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