Wireless Differentiation

Cablevision to Build Footprint Wide Wi-Fi Mesh Network

Bernie — Thu, 08 May 2008 17:37:04 -0400

Cablevision, a cable triple play pioneer, announced plans to launch a broadband wireless network covering their New York metro footprint within two years. The new network will be based on Wi-Fi mesh technology and will be offered at no charge to existing Cablevision customers and for a fee for non-Cablevision customers. Cablevision has about 3.3 million customers and an industry leading broadband penetration rate of 50%. This launch follows a trend by other smaller cable MSOs and broadband service providers, who see broadband wireless networks as a value add opportunity for existing customers.

This is not just about broadband Internet access though. For example, Multichannel News describes a possible scenario offered by Cisco, where “… a Wi-Fi mesh network could allow a cable operator to offer subscribers ubiquitous connectivity in a metro area for any service. For example, someone watching TV could choose to transfer the video signal to a cellular phone and walk outside if Cisco’s Cable Service Mesh is deployed in the subscriber’s neighborhood.” Applications like that could provide tangible competitive advantage. At least until Verizon integrates a similar service utilizing FiOS and LTE. With announcements like this and the recent WiMAX joint venture featuring prominent cable companies, it appears as if cable is getting their wireless mojo going.

Sprint First to Market with Mobile Broadband Handset

Bernie — Mon, 10 Mar 2008 17:03:19 -0400

In what is surely a sign of things to come, Sprint will provide an EVDO Rev. A software upgrade for its HTC Mogul handset, making it the first mobile broadband enabled handset. Upgraded Mogul’s will have true broadband wireless access, with download speeds ranging from 600 kbps to 1.4 Mbps, and upload speeds of 350 to 500 kbps. Previous speeds available to the Mogul before the upgrade, range from 400 kbps to 700 kbps downloads and uploads of 50 kbps to 70 kbps. Prior to the Mogul, mobile broadband has been limited to laptops which utilize either a laptop card or a built in wireless modem. Broadband enabled handsets have been in play for some time, but have used primarily Wi-Fi for their broadband access. The Mogul will now have true broadband anywhere there is EVDO Rev. A coverage (BTW, don't you love our industry’s acronyms – try explaining EVDO Rev. A to a lay person).

Mobile broadband should see considerable expansion in the months and years to come. Wireless carriers are positioning it as a differentiated and value add service. A knock on the popular iPhone is its lack of a true mobile broadband option. Sprint seems like an unlikely first to market candidate given their troubles of late. But they may prove to be a big early player in mobile broadband with the Mogul and with promised WiMAX enabled handsets due by the end of this year. It may prove to be one of the few competitive bright spots available to Sprint – one that they would be wise to exploit.

Mobile Broadband Usage Grows by 157%

Bernie — Wed, 05 Mar 2008 09:11:46 -0500

According to comScore, access to the Internet through mobile broadband connections grew by 157% in 2007. Mobile broadband technology includes EV-DO Rev. A which is offered by both Verizon and Sprint. Mobile broadband connections are achieved through PC/laptop cards, built-in adapters, or by tethered smartphones. comScore pegs the number of unique mobile broadband users at 2.1 million. “Though mobile broadband access is currently used by about 1 percent of the total U.S. Internet population, it is poised for significant growth over the next few years,” said Serge Matta, senior vice president of comScore.

Mobile broadband will certainly increase dramatically, especially if Sprint’s Xohm gets off the ground soon. In fact, mobile broadband will increasingly impact the competitive landscape as more and more users find its convenience appealing. Mobile broadband has the potential to have a similar impact on landline broadband that cellular has had on landline voice. Additionally, telecom carriers will increasingly add mobile broadband to quad play bundles to create differentiation and competitive advantage. The numbers are low today because we are just leaving mobile broadband’s "embryotic" stage. But we will soon see "hockey stick" type growth and its competitive impact will be undeniable.

Verizon Wireless Gets Out in Front With Open Access

Bernie — Tue, 27 Nov 2007 13:24:36 -0500

Verizon Wireless announced today that they will be “opening up” their network to wireless devices, software, and applications not offered by the company. According to a company press release, “In early 2008, the company will publish the technical standards the development community will need to design products to interface with the Verizon Wireless network. Any device that meets the minimum technical standard will be activated on the network.” I’m sure many people will yawn at this development and think it doesn’t go far enough, but we should all recognize that it’s a pretty bold step for a traditional carrier like Verizon Wireless, who is notorious for wanting to control and limit network access. Is this a calculated move to address Google’s Android project?

You have to assume that Android played a role in this. This move by Verizon may not be totally a result of Android, but I’m sure it helped move it along internally. Verizon joins Sprint who made a similar pledge for their upcoming WiMAX network (assuming it gets built). Of course Google is leading the charge here and put their money where their mouth is by leading the Android movement. There is also speculative consensus that Google intends to be a major player in auction 73 for highly valuable 700 Mhz spectrum. If that is indeed true, Google may be setting itself up to create a compelling competitive ecosystem for established wireless players. It seems as if Verizon recognizes this possibility and hence is now a champion of open access. The promise of open access, where consumers can utilize devices on a wireless network that are sold independently of that wireless carrier, may further stimulate the already quite competitive wireless landscape. It may also fuel a new wave of innovation, including devices and applications well beyond traditional cellular phones, that may positively contribute to the bottom lines of all involved. With Verizon's announcement, they join Sprint and T-Mobile as publicly embracing some sort of open network initiative. Missing of course is AT&T - the current king of closed networks thanks to the iPhone. How long will they be able to maintain their closed access "lone ranger" status?