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

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...