Home » Competition »Consumer News »Cox »Wireless Broadband » Currently Reading:

Cox Disconnects Its “Unbelievably Fair” Cell Service; Existing Customers Will Migrate to Sprint

Phillip Dampier November 16, 2011 Competition, Consumer News, Cox, Wireless Broadband No Comments

Don't bother.

Cox’s ambitious plans to get into the cell phone business were already tempered by the cable company’s decision last spring to simply resell Sprint service under the Cox name.  Now it’s “game over” as the company today quietly stopped signing up new customers and will pull the plug on existing ones March 30, 2012.

Those customers already signed up for Cox’s “unbelievably fair” cell service will officially become Sprint customers next April.

In a confidential memo obtained by Engadget, Cox executives ultimately decided it didn’t make sense for the company to invest in a limited range 3G cellular network.

Cox’s plans to utilize the 700MHz wireless spectrum it acquired in 2008 for 3G-powered wireless service began to go wrong almost from inception.  The wireless business is increasingly in the hands of two super-sized companies, thanks to ongoing mergers and acquisitions.  That leaves smaller, regional companies at a competitive disadvantage unless they heavily discount service.  While Cox was contemplating its first 3G network, AT&T, Verizon, and Sprint were well on the way to launching next generation 4G service that would have left Cox behind.

Cox itself is a regularly-rumored takeover target, likely by Time Warner Cable.  No cable industry buyer has much interest in a cell phone service.  Shedding it could make the company more attractive for would-be suitors.

Engadget reader Sal Petrarca observed:

I always thought it ironic when I [heard Cox's radio ad asking customers] ‘You wouldn’t order cable from the phone company, would you?’ I guess no one is going to be ordering [cell] phones from the cable company now, eh?”

Share






Search This Site:

Contributions:

Recent Comments:

  • Allan G: @Web Stuff - No corporation makes it easy to find all the information consumers want. I don't work for Charter but I have my years of experience in t...
  • losing fat fast: Great article, totally what I was looking for. Stop by my blog post :: ...
  • best health supplements: Yesterday, while I was at work, my sister stole my iPad and tested to see if it can survive a 25 foot drop, just so she can be a youtube sensation. ...
  • Sabiha: This totally worked for me! They gave me 12Mbps for $25.50/mo with a one year contract. I was paying $31/mo for 6mbps so this was a good deal. Be advi...
  • Thomas Smith: if i already have lightning 90, and have dead spots, it should be brighthouses responsibility to fix it not charge me extra for something im already p...
  • Michael Elling (@Infostack): My question is does it open up layers 1-2 to wholesale? Maybe not overnight, but eventually?...
  • Phillip Dampier: It is no surprise to me to see companies like cell tower asset holders rush headlong in this direction, and clearly companies like AT&T wanted these a...
  • nxm: I was paying 91.23 out of pocket inclusive of everything for U200 and 18Mbps. As soon as the promotion ended after a year, the cost went up to 158.57....
  • Michael Elling (@Infostack): Do you think the capital markets will want this type of REIT to operate like the towers and datacenters (and malls and commercial office buildings?) i...
  • Milan In Austin: I've done my part and submitted my comments to the New York State PSC. Here they are: >>>> Dear Secretary Burgess, I have been a faithf...
  • nikita: Unsurprisingly, new customer promos are ~ 40% less than rack rate @ AT&T U-Verse. I'm on month-to-month U200 + 18mbps plan ($174/mo) with 3+ years...
  • Mike B: I called to get a Uverse box upgrade 6 months after I upgraded to HD with antiquated equipment, they only upgraded the software on the box. The DVR w...

Your Account: