Cable operators do wireless dance

It's no secret that U.S. cable companies would like to add wireless capabilities to their service portfolio, if only to eliminate the main advantage telephone companies hold in the race to sell voice/data/video bundles. But how quickly the two segments figure out how to combine forces is a matter of debate.

Top cable executives at the National Cable & Telecommunications Association show in San Francisco last month said discussions are under way on how wireless and cable companies can work together.

“We've gone to global companies to discuss [wireless service],” said Cox President and CEO James Robbins in a general session panel discussion. “Those conversations are going on.”

Sprint has been the most active wireless operator in its pursuit of cable partners. It announced an MVNO trial with Time Warner Cable in Kansas City, Mo., but Sprint officials describe it as a starting point. For now, the two companies are combining bills and customer service contacts as well as enabling free calling between a customer's cable phone number and wireless number, according to John Overy, business development director for Sprint.

Mike D. Smith, director of business development for cable solutions for Sprint, said the two sides “are still talking about what the business framework would look like.”

Cable is moving very aggressively to sell voice-over-IP (VoIP) services and would like to create wireless/wireline integration around that voice application. But right now, the priority is selling VoIP as a primary-line replacement to cut the telco cord, according to the cable execs in charge of marketing and engineering VoIP.

“We think having a wireless play is critical, but it's not critical today,” said Sam Howe, senior vice president of VoIP marketing for Time Warner Cable. “We could do a lot of things today, but it would slow things down in terms of penetration.”