Time Warner Cable Offers IntelliGo – Analyst Blog

Time Warner Cable Inc. (TWC) has started selling WiFi hotspots called “IntelliGo” to its “Road Runner Mobile” subscribers. “Road Runner Mobile” is the brand of Time Warner Cable’s next-generation (4G) WiMAX network. Manufactured by Sierra Wireless Inc. (SWIR), IntelliGo is a dual mode (3G/4G) mobile hotspot device that can provide WiFi connectivity to five devices simultaneously. These devices include notebooks, netbooks, gaming devices, media players, and cameras.

 

Utilizing the nationwide WiMAX network infrastructure set up by Clearwire LLC (CLWR), Road Runner Mobile service is now available in Dallas, San Antonio, and Austin, Texas; Charlotte, Raleigh and Greensboro, N.C.; Honolulu and Maui, Hawaii; and Kansas City, MO. IntelliGo can connect to any WiFi enabled device on Clearwire’s WiMAX network as well as Sprint Nextel Corp’s (S) nationwide 3G network. Time Warner Cable will charge $49.99 (after a $50 rebate) for IntelliGo to its WiMAX subscribers who have signed a two-year contract.

 

From last March, Time Warner Cable started offering WiFi connectivity to its WiMAX customers and in last April, the company entered into an agreement with both Comcast Corp. (CMCSA) and Cablevision Systems Corp. (CVC) for free WiFi platform sharing. This was a major move on the part of cable MSOs to counter competitive threat from telecom operators and satellite TV providers.

 

WiFi connectivity is likely to become a huge opportunity for communications service providers. Several industry sources predicted that WiFi enabled wireless devices like phone, computer, and consumer electronics may cross one billion by 2012. Mobile TV traffic over WiFi is expected to increase 25 times from 2010 to 2015. Telecom giants like Verizon Wireless (VZ) and AT&T (T) both have strong WiFi presence.

 

Road Runner Mobile broadband network supports Internet speed of 6 Mbps. Time Warner Cable aims to consolidate its position in this highly competitive market by offering mobile hotspots to its WiMAX customers. IntelliGo (the Sierra AirCard W801 Mobile Hotspot) will provide its users the convenience of mobility so that customers can enjoy the WiFi service on their devices from anywhere within the service circle.

 

We maintain our Neutral recommendation for Time Warner Cable. Currently it is a Zacks #3 Rank (Hold) stock.