Is Wireless Really in the Quad Play? 11/20/2007 10:39
Don’t assume that every service provider is rushing to add wireless to VoIP, video and data to form a four-service bundle.
In fact, when you get past Tier 1 telcos such as AT&T and Verizon with huge wireless assets, you don’t hear that much about wireless at all. Instead, many carriers are looking to leverage their video infrastructure for that fourth bundled service.
More than a few have already added IP-based video home monitoring to their triple-play bundles. No wireless. And why not? It uses the same infrastructure to the home. It doesn’t require heavy lifting, with a camera or two sufficing. And people feel they really need it, not like sports scores on wireless handsets.
Many big-name carriers, like AT&T, have rolled out IP home monitoring services, but I don’t think they’ve added them to any type of bundling structure of pricing and marketing. That would be interesting.
But back to wireless as the four seed. Just how serious is cable about adding wireless to its triple play? Their joint venture with Sprint, Pivot, is arguably more of a checked box than a vibrant service that cabelcos are spreading to the masses. And with no expansion planned for it, you probably don’t need shades to see the future.
Cable’s just got way too much on its plate already to spend much time and resources on wireless. They’re in a fierce battle of network bandwidth with telcos, and not just for video but for high-speed Internet too. They’re plowing ahead quickly adding voice customers. They’re forging ahead with their blitz on SMBs that RBOCs have forgotten in their make-or-break video quests. And then there’s content …
Aside of traditional communications services and their network challenges, cablecos are focusing hard on working with content companies to help them make the most of content distribution to new and evolving markets, with TV and Internet far ahead of wireless on the priority list.
Telcos mostly work with content companies when they need carriage deals for the video services.
Regardless, that leaves precious little if any time for wireless if you’re a cableco. And that would explain why execs weren’t jumping off skyscrapers after hearing the latest Pivot news.
It’s all about priorities. So keep an open mind when you think “quad play,” and remember what your parents already said about assuming things. The good news is, in most cases, there will be a fourth service. I just wouldn’t bet on it being wireless.
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