Mobile Ecosystem: Cable and Wireless – Will it Work?

Mark Lowenstein at Mobile Ecosystem writes a lengthy analysis in the firm's monthly newsletter about cable companies entering the wireless business due to changing market conditions and flat growth in their core markets.

Lowenstein feels the time might be right for cable to go into wireless. One area he could envision is "a $100-125 per month flat rate access fee, which would include cable, broadband data, unlimited VoIP, and a generous bucket of wireless minutes. On top of that would be a grab bag of premium content spanning on-demand video, digital music, information services, and various personalization features, with greater flexibility around and synchronization between the end-devices (ie. screens) being used to access that content."

Lowenstein analyzes the key issues and concludes that:

The cable play in wireless will only succeed if it leverages on the unique assets and capabilities that the MSOs have to offer – a compelling bundle, comprehensive “data” service, and unique content. On the way, there’s a lot – A LOT – that must fall into place, in order for the cable companies to make a go of it. The shifting sands of the broader telecom picture mean that the cable and wireless operator view of one another as friend and/or foe is a work in progress as well.