The cable industry is now entering the wireless cellular arena

[Zee]

Cox to build its own cellular network

Cox Communications is building its own cellular network to eventually offer mobile voice, data and entertainment in all markets it serves across the U.S., the cable operator said Monday.

Cox is one of the nation's largest cable providers, with 6.2 million residential and commercial customers. Though it has offered fixed-line phone service since 1997, Cox does not have any mobile services today.

The company will partner with Sprint Nextel to quickly launch a 3G (third-generation) service next year, but it is also building out its own network for launch next year in some of the markets it serves, said Cox spokesman David Grabert. Overall, four markets will go live next year, he said. The company did not disclose those markets or dates for availability. The same features and services will be offered both in markets served directly by Cox and those in partnership with Sprint, Grabert said.

Cable operators are bundling services, including TV, broadband Internet, voice and mobile, to ultimately offer subscribers a one-stop shop and a single bill. They hope bundling also keeps customers more loyal.

By building a mobile network of its own, Cox is committing itself to an expensive and complex project that its rivals have left to partners already in the cellular business. Comcast, Time-Warner Cable and Bright House Networks have joined with Sprint and Clearwire to help build out a national WiMax 4G (fourth-generation) mobile broadband network and plan to offer services on it.

Cox said it is building its own infrastructure so it can control the whole operation, including marketing, sales, back-office operations, customer support and billing. This will help the company maintain its strengths of network reliability and good customer service, according to Grabert.

"We've learned that the best thing for us is to manage services holistically," Grabert said.

Among other things, the service will let Cox subscribers use their mobile phones to program their DVRs (digital video recorders), watch TV programs and access content stored on their home PCs, the company said.

The network initially will be based on CDMA (Code-Division Multiple Access), which is also used by Sprint, but Cox will also test LTE (Long-Term Evolution), the 4G technology growing out of GSM (Global System for Mobile Communications), for possible future use. Cox said it has already invested more than US$500 million in wireless spectrum licenses as well as infrastructure and people to build its own network.

Cox serves customers in 28 major markets across the U.S., including Phoenix, New Orleans, central Florida, Rhode Island, Connecticut and Las Vegas, according to a service map provided by the company. It plans eventually to build out its own mobile network to cover all those markets. The company will make roaming deals to ensure that its subscribers have mobile service across other parts of the country, but it has not yet disclosed whether Sprint will be that roaming partner, Grabert said.

This rocks. This is kind of like how VOIP arguably enforced the cap on POTS prices and how FIOS made cable so much better than it was, the table is swinging the other way again now.

I hate cell phone companies. Don't get me wrong, they are clearly the lesser of 2 evils in that they are infinitely better than landlines (and only because VOIP leveled out that playing field). Companies, especially the GSM based ones (Tmobile/Cingular) has contributed much into providing a "3rd" choice after POTS landlines and before Voip. But, the free market system is as effective as the way the gas and airline prices are eager to come down...

Side Rant: Especially Verizon, the mother evil of all companies, the mass raping of their latest cash cow (text messages), how they lock their CDMA phones choices with empty promises of opening their CDMA network, how they lock the software side too, their large part in blocking Google from directly entering the wireless market via their heavy lobbying to ensure that none of the new available frequency spectrums will ever be "open", their ass raping extra surcharges and fees, and their monopolistic rates on their POTS services, their takeover of Alltel, just to name a few.

Like your cable company or not, (im sure cablevision companies are far happier compared to comcast), this is one market that needs better competition.

 

[rudeguy]

It will take years to implement. Even if they partner with Sprint (worst coverage ever), it takes many more towers to provide the penetration needed for in-home high speed.

I predict fail.

 

[QueBert]

rudeguy, I've had every carrier and in California Sprint has the best coverage hands down. It might suck elsewhere, but frankly if you live anywhere but Cali, who cares? It's all about Cali

 

[axelfox]

I disagree that cell phone companies are infinitely better than landlines. In my experience, the call quality of POTS is better than cell phones, even at full bars, and my past VOIP providers. Moreover, cell phone companies have not implemented the same caller-ID functions like landlines/VOIP where the name appears; in cell phones, even though the number appears, you may not recognize the number unless it is saved to your contacts list.

 

[ultimatebob]

I can't wait for Cox to release a "Quad Play" service that offers bundled TV, Internet, Phone, and Wireless service for a low rate of about $149 a month....

Only to have it jacked up to $269 a month once the six month promotional period ends, or maybe $289 if you want to keep your "free" HBO and Cinemax. They ARE still a cable company, after all

 

[boomhower]

I have my doubts. Time Warner attempted something similar around here with Sprint a couple years ago, I believe it was called Pilot. They wanted to do the same similar things by linking it to you email, TV, and such. It died off without my fanfare. Sprint has good coverage around here as well.