Cable TV operator plan to increase WiFi hotspots in the US

Saturday, September 15th, 2012 4:14:50 by

Cable television companies plan to expand their business in the WiFi networks all over the US. In a recent statement, the consortium is expected the increase the number of WiFi hotspots to 100,000 at the end of this year.

Companies like Comcast, Bright House Networks, Cox Communications, Cablevision Systems and Time Warner Cable will jointly be increasing the number of hotspots in public places. This is being done to retain the customer traffic on WiFi usage.

“We really look at it as a product enhancement to our high-speed data (HSD) product,” TWC’s chief financial officer, Irene Esteves said at a Bank of America Merrill Lynch conference. “For us, it’s really improving the retention and the experience of our HSD customers.”

The increasing use of 3G and 4G LTE and HSPA+ has inflicted damage to the WiFi business that was at boom about five years ago. The use, which is for free in most occasions, offers broadband internet connectivity to the public on their laptops and mobile device like smartphones and tablets.

Jefferies analyst Thomas Seitz said that the move will breathe life into the WiFi business by cable TV companies. This will keep them happy and in the long term these companies might charge them for exclusive services like live television on laptops and mobile devices.

“Cable — with its extensive Wi-Fi networks passing restaurants, shopping areas, universities, transportation hubs and increasingly businesses — could ultimately play a disruptive role (in wireless services),” he said.

Moreover, Federal Communications Commission is expected to persuade the likes of EW Scripps, Nexstar, Belo, Ion Media Networks, Media General and Sinclair to put parts of their radio spectrum to auction, where big carriers like AT&T, Verizon and Sprint are likely to bid. This will help the wireless carriers to further enhance their services.

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