Wireless' Pivot point

The demise of Pivot, Sprint's joint venture with leading cable companies to offer subscribers wireless services, has had many ceding the market to telecom service providers. Some took it is a sign that cable, admitting defeat, would go back to focusing on the triple play and hope it was enough. Others saw it is an unspoken commitment to help Clearwire and Sprint roll out WiMAX in lieu of a wireless offering. Some industry observers even believe the downfall of Pivot may actually be a sign of the rise of a new player in wireless: cablecos.

Cable is facing the same competitive pressures as telcos; it is just a matter of what part of their bundle is missing. Bright House Networks, Comcast, Cox Communications and Time Warner Cable tried to make the partnership route work with more than $200 million invested in Pivot, but ultimately it proved to be the wrong time, the wrong partner or maybe the wrong service. Whatever the cause, partnerships — especially those involving several companies — often prove to be messier than forking over the investment to go it alone.

Comcast, for one, has taken clear steps in the way of wireless. Just last month, GigaOM reported Cingular and Telefonica alum Dave Williams was appointed vice president of wireless and technology strategy. Unless Comcast's strategy involves not having a strategy at all, it clearly isn't bowing out yet. We also can't forget that as part of SpectrumCo, a joint venture of all the Pivot stakeholders, Comcast has $2.37 billion in Advanced Wireless Services spectrum. The first commercial services over AWS have launched. I can't imagine Comcast, or any cableco for that matter, would let it go to waste.

For now, telcos still have a hold on their one true edge: wireless networks. With their history in telephony and established business models, it would take a lot to turn the tides. That doesn't mean they are in any position to declare victory. Both sides of the industry are dealing with their own unique sets of problems. The question will become which can move faster: telcos on IPTV or cablecos on wireless? It is bound to turn into an all-out race.