Skip to main content

Irony: Cable MSOs to Simplify Mobile Service

USA Today reports that more than one year after announcing plans to jump into the mobile phone services business, America's biggest cable TV operators, in partnership with Sprint Nextel, are finally launching their service offering.

Comcast, the largest U.S. cable TV operator, later this month will add wireless to its offerings in Boston and Portland, Oregon, says Sprint CEO Gary Forsee. Time Warner Cable, at about the same time, will launch their mobile service in Austin, Texas and Raleigh, North Carolina.

Cable companies believe they need to add cellphones to their TV, Internet access and home phone bundles. AT&T and Verizon, which own huge cellphone operations, are adding TV to their service bundles, putting pressure on cable operators to keep pace. Forsee acknowledges that the launch has taken longer than expected. "But the good news is that we've got something that is unique."

Ease-of-use will be the hallmark of the new service. People want simplicity. One example: A "universal" voice mail box feature alerts customers on their mobile phone when a message has been left via their home phone line (consumers must subscribe to the cable operator's home phone service).

New software will also make it easier to send and receive e-mail from a mobile phone. Hoping to drive service bundle sales, cable companies will require customers to buy at least one other service, such as broadband or TV, before they can sign up for wireless phone service.

Customers will receive one bill -- from their local cable TV operator. Customer service and support also will be handled by the cable companies. Frankly, I find it somewhat ironic that cable MSOs decided to make usability and simplicity the keystone of their service differentiation strategy. Most analysts assumed that they would focus on multimedia content.

While mobile service providers typically target early-adopters with new service launches, in contrast the cable MSOs appear to be targeting mainstream consumers. Apparently, they have made total 'addressable market adoption' a high-priority objective, and therefore that would explain the service launch delay.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....