Time Warner Cable In Talks With Hybrid Wireless Net: Report
LightSquared Could Provide Mobile Web Service to Cable Customers
Mike Farrell -- Multichannel News, 3/24/2011 5:08:47 PM
Time Warner Cable was said to be in early talks to utilize Light Squared Inc.'s yet-to-be-built wireless network to offer mobile Internet access to its subscribers, according to a Bloomberg News report citing unnamed sources.
LightSquared is backed by investor Philip Falcone, the billionaire head of Harbinger Capital Partners. Harbinger made news a few years ago when it bought up large blocks of stock in Cablevision Systems. It has since substantially reduced that stake.
LightSquared plans to build a nationwide hybrid broadband network that would provide high-speed Internet access via a combination of satellites and terrestrial lines. According to its web site, LightSquared has a "wholesale only model," meaning that it would provide capacity to other retailer that would resell the service to consumers. Under that type of scenario, Time Warner Cable could resell the LightSquared service under its own brand.
That sounds similar to a deal Time Warner Cable already has, with Wi-Max service provider Clearwire. Time Warner Cable, Google, Intel, Sprint, Comcast and Bright House Networks agreed to invest $3.2 billion in Clearwire in exchange for the ability to use its Wi-Max network. But since that deal was struck in 2008, Clearwire has run into several snags, running low on funding to build out its network. At last count, Clearwire had launched Wi-Max service in 70 cities reaching 119 million customers.
Time Warner Cable spokesman Justin Venech declined to comment on the Bloomberg report, citing company policy regarding rumors and speculation.
LightSquared would use a different technology than Clearwire - LTE which offers speeds of up to 100 Megabits per second - and expects the commercial launch of its service to begin in the second half of this year. LightSquared has pledged to make its network available to 100 million customers by the end of 2012 and to 260 million subscribers by the end of 2016. The company has said it will spend $14 billion during the next eight years.
LightSquared spokeswoman Audrey Fix Schaefer also declined to comment.
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