This looks like it is the end of the line for the cable television industry trying to be a player in the wireless space using their own networks.
Does this mean we can no longer expect to see the cable television companies offering wireless services? No. It just means they no longer intend on building their own organizations. They will re sell Verizon Wireless services. Will they be successful? That is another question. They were not with Sprint Nextel.
Wireless is confusing. It is growing so rapidly and it looks like it is such an easy business, but only if you understand the rules of the game.
The cable television industry has tried to get into wireless in recent years and they have failed.
SpectrumCo, LLC is a joint venture between Comcast, Time Warner and Bright House Networks. SpectrumCo has announced they will sell their wireless spectrum to Verizon Wireless. This is the end of the big speculations that the cable television industry would become a powerhouse in wireless.
This is good news for both.
SpectrumCo would have continued to struggle in the wireless space because they just didn’t think like a wireless company. Dumping their spectrum makes sense.
Verizon Wireless, just like every other wireless carrier has to get their hands on more spectrum or risk having the same capacity problems AT&T has been facing over the last few years. This makes sense for Verizon.
Demand for wireless data services has exploded in the last four years and I don’t see it slowing down in the near future.
I’ll bet AT&T wishes they could have got their hands on this spectrum. That would have solved their problem, but they are taking a different path by trying to acquire T-Mobile.
All these companies have also agreed to sell each others services. Will this be successful? We have seen this kind of activity in recent years and the answer based on that is no. But we’ll see. Perhaps things have changed. Things always change.
One thing that is good news for the cable industry is they will be able to sell Verizon Wireless phones. Will they be successful is the next question? If they sell Verizon Wireless the way they sold Sprint Nextel they will fail once again.
The good news for cable is they can get into the business without operating a wireless network and business. They failed with Sprint Nextel. Will they be successful this time? We’ll have to wait and see. We can always hope for the best.
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These comments may be quoted in news stories.
Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
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Jeff KAGAN| Tech Analyst w Atlanta based jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Wireless Industry Analyst ~ Telecom Industry Analyst
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Phone: 770 579 5810