Home » Clearwire »Comcast/Xfinity » Currently Reading:

When Competition Isn’t: Comcast<->Clearwire<->Time Warner Cable

Phillip Dampier July 2, 2009 Clearwire, Comcast/Xfinity 1 Comment

ClearwireCable operators have been looking for a way to expand their broadband service to outside the home, and Comcast, Bright House, and Time Warner Cable have found their answer: WiMax technology from Clearwire.  They’ve joined Intel and Google as minority investors, collectively owning 25% of Clearwire, after investing more than $3 billion dollars in the wireless broadband service.  What do they get for the buy-in?  The chance to market Clearwire services to their cable broadband customers for “on-the-go” broadband.

Comcast High-Speed 2go Metro service launched Tuesday in Portland, Oregon providing consumers with portable speed up to 4Mbps in Clearwire’s own 4G network service area.  Comcast customers can sign up for a promotion for $49.95 a month for one year, which includes their wired cable modem service, a Wi-Fi router, and Clearwire wireless service (regular price after the promotion is $72.95 monthly).  Customers can access the service in any Clearwire 4G service area nationwide.  Where Clearwire doesn’t offer service, customers can “roam” on Sprint’s 3G data network nationwide for an additional $20 a month more.  There are no known usage limits at this time.  Existing Comcast broadband customers in Portland can add the Clearwire-based service starting at $30 a month.

The service will work for laptops, but not mobile data devices.  Comcast’s investment in Clearwire made such a venture possible, and is expected to compete with mobile phone broadband data plans, which typically offer 5GB of service for $50 a month.

Comcast will sell service in Atlanta, Chicago and Philadelphia by the end of 2009.

While the service will be useful for Comcast customers who travel or who want more reliable, fast wireless data access, Clearwire’s ability to serve as a true competitor to Comcast, Time Warner Cable, and Bright House may be compromised by those partnerships.

Could Clearwire effectively create promotions and plans that could lead to customers cutting the cord on their cable broadband provider?  Should cable companies increase their investments and ownership interest in Clearwire, would it ultimately matter to them where you obtained service?




Share

Other stories of interest:

  1. Clearwire Service Area – Rochester, New York: Outside of the Metro? Clearwire Remains an “Iffy” Proposition
  2. Competition in the Nation’s Capital Brings Top Speed Service & Choice – But Comcast Still Caps
  3. WHEC-TV – Rochester: How the Measuring of Internet Usage Could Affect You
  4. Competition Equals Better, Faster Service: Fiber Is Good For You!
  5. Premium Speed Tiers = Bragging Rights, Higher Returns, Happy Customers

Currently there is 1 comment on this Article:

  1. [...] This fall, Time Warner Cable will introduce a wireless broadband option, similar to what Comcast is offering, to provide a portable version of Road [...]

Search This Site:

Contributions:

Recent Comments:

  • Sean: A phone company says having customers with working phones is a harmful business model? WTH?...
  • txpatriot: Have any of those mayors asked whether Marriott has built luxury hotels in those depressed areas, or why Cadillac hasn't opened car dealerships in tho...
  • txpatriot: I love it -- this article has NOTHING to do with caps, broadband or anything else related to "Promoting Better Broadband, Fighting Data Caps, Usage-Ba...
  • Bill: It doesn't exactly sound like Verizon is the victim in this article: http://www.huffingtonpost.com/bruce-kushnick/the-great-verizon-fios-ripoff_b_1...
  • txpatriot: Scott here's another example, this time by a start-up which by definition is somewhat smaller than google: http://www.nytimes.com/2012/05/23/techno...
  • txpatriot: Phillip, I get that you don't like the VZ co-marketing deal, but can we stick to the subject? The 400 word article you wrote was about CABLE companie...
  • txpatriot: Scott, it takes only one counterexample to disprove a general claim. And surely you're not suggesting that only a company as big as google could ...
  • Scott: I'm afraid I don't share your optimism when you're have to point out a company with a market cap of nearly 200 billion dollars paying a 3rd party to b...
  • Phillip Dampier: In the context of the co-marketing agreement between the cable industry and the nation's biggest wireless operator (Verizon Wireless), building out Wi...
  • txpatriot: Scott, I didn't respond to your comments on barriers to entry. I agree that incumbents have significant advantages as "first-movers". But incumb...
  • txpatriot: "The consumer advocacy group Public Knowledge on Monday criticized an announcement by a group of major cable companies that their customers would now ...
  • George: Schenectady has some of the poorest population in the entire upstate region and they have FiOS. This is a load of bunk. The reason for the lack of exp...

Your Account: