Cable TV operators are interested in expanding their fixed-line phone services to “quadruple-play” packages of TV, broadband Internet, fixed-line voice and mobile voice. And looks like Time Warmer are likely to partner with Sprint to offer shared mobile phone services.
Sprint already partners with a smaller cable operator, Sunflower Broadband in Kansas, to provide mobile phone services to its customers.
But this arrangement is little more than a marketing deal to resell Sprint services, where the telecoms group retains responsibility for billing, branding and customer service.
At the other end of the scale, Sprint has contracts with AT&T, ESPN, Qwest and Virgin to provide network capacity and other more limited wholesale services so that they can operate as so-called Mobile Virtual Network Operators (MVNO).
It is unclear at this stage whether Time Warner is seeking to become a MVNO along these lines which would require far greater investment than resellers.
More from Techdirt:
The fact that Time Warner is looking to add a mobile phone solution (via an MVNO arrangement) isn't a surprise. They mentioned it in March, confirmed it in June and talked more seriously about it in November. So, it's not entirely clear why everyone is making a big deal out of the fact that the company is now talking to Sprint about using their network. Sprint, of course, has jumped into the MVNO market in a big way, providing the network for most of these new offerings, from Virgin Mobile to the new ESPN mobile phone offering. It's also not surprising that cable companies are looking to add a mobile phone solution -- that too many people are calling a "quadruple play," when it's really more about making the triple play mobile. However, what's more interesting is that it finally appears that other carriers are waking up to the possibilities of the MVNO market. While lots of people picked up on the fact that T-Mobile USA wasn't looking to team up with any other carrier, it didn't receive quite as much attention that part of their strategy to stay relevant is to offer their network to cable companies in an MVNO-style relationship. For all of those who were afraid that the Sprint-Nextel merger was going to mean less competition, the market is rapidly filling up with new companies who are simply using existing networks to offer service. While it does raise questions about the network provider competing with its own virtual operators, it looks like there's still going to be plenty of competition.
More from PaidContent:
-- The deal would start with a 1Q05 trial in Kansas City, Sprint's home base and a solid market for Time Warner Cable.
-- "The calls would travel over Sprint's traditional cellular network, so calling coverage would likely be identical to that currently offered to Sprint customers. Time Warner would probably handle issues like billing, customer service and marketing."
Related:
: UBS Media Week: Comcast Vague About Wireless Future
: Good piece on Sprint's strategy of becoming the most successful wholesale provider to the MVNOs and cable companies. In the US, Sprint has MVNO deals with Virgin Mobile, Qwest Communications and AT&T
