Cable’s Wi-Fi Dreams Need a Push: NCTA

Group Backs Effort to Let FCC Free Up Unlicensed Spectrum

By John Eggerton -- Multichannel News, 2/13/2012 12:01:00 AM

Washington — Advocates for unlicensed wireless spectrum have stepped up their push for the Federal Communications Commission to free up more reclaimed broadcast bandwidth for unlicensed use.

That effort would come in handy for cable operators expanding their Wi-Fi footprints as a value-added feature for broadband customers.

The push comes at an opportune time: Congress is wrestling with a Republican-backed House version of incentive auction legislation in a payroll tax extension package, or absent that as a standalone bill, that would limit the ability of the FCC to free up more of that unlicensed spectrum.

Among those putting in a plug for more unlicensed wireless spectrum has been National Cable & Telecommunications Associat ion execut ive vice president James Assey, who appeared at two forums over the past three weeks to talk up the technology.

The NCTA has not taken a stand on other portions of the bill, but it is clearly with those who are arguing that the FCC needs the flexibility to open up more unlicensed spectrum to meet growing demand.

“We believe the language in the House bill should be changed so that [the FCC has] the flexibility it needs to meet growing consumer demand for both licensed and unlicensed uses,” said NCTA vice president of communications Brian Dietz.

Some House Republicans have argued that setting aside more unlicensed wireless spectrum would reduce the take to the Treasury — some of the proceeds from the spectrum bill would offset the payroll tax break — and that if some of the big-pocketed backers of unlicensed spectrum, like Google, believe that to be the best use for the bandwidth, they should bid for it at auction.

To the extent that cable wants to be in the wireless broadband business without having to build out a network — a desire signaled by the decision last December by Comcast, Time Warner Cable and Bright House Networks to sell their Advanced Wireless Spectrum allotment to Verizon Wireless — hot spots are at least a partial solution to building out full-blown consumer wireless data networks.

And with some Wi-Fi hotspots experiencing congestion, being able to use a Cablevision or Comcast connection — rather than, say free Wi-Fi at McDonald’s or Starbucks — could add value for customers, and be a way for some subscribers to keep from exceeding their cellular carriers’ mobile-data caps. That could reduce churn or serve as a marketing tool to attract new customers. Cablevision Systems, for one, is aggressively pushing the product.

Cablevision concedes hot spots are a huge part of its wireless strategy. In 2008, the company launched a $300 million effort to build out Wi-Fi across its footprint. It started off with outdoor areas, train stations, parks and parking lots, and has expanded from there. The idea was to make the Optimum Online high-speed Internet service more valuable to customers by offering them free, unlimited use of hot spots.

Bethpage, N.Y.-based Cablevision struck a Wi- Fi roaming deal with the New York area’s two other main cable providers, Comcast and Time Warner Cable, in 2010, giving them access to Cablevision’s aggressive buildout. The move also helped Cablevision fill in gaps along Northern New Jersey train lines in towns served by Comcast; and gave it access to some large New York City public spaces in areas served by Time Warner Cable, such as Manhattan’s Bryant Park.

Cablevision has tens of thousands of hot spots, and customers are apparently flocking to them. Cablevision is also touting the deal to small business customers, offering enterprise subscribers a chance to turn their business into the latest Cablevision hot spot if they buy phone and data service.

“We’re big believers in Wi-Fi as a way to make our wired broadband product even more valuable and useful for customers, especially as Wi-Fi-enabled devices like smart phones, iPads and notebook computers continue to proliferate,” said Cablevision vice president of media relations Jim Maiella. “We’ve built the nation’s largest Wi-Fi network — made even larger through interconnection agreements with other cable providers — and our customers are using the network and taking advantage of this fast and free wireless Internet access — a data fast lane, available at a time when demand for connectivity is exploding.”

COMCAST’S PUSH

Comcast, the NCTA’s largest member, is also high on Wi-Fi as part of its wireless strategy. Combining thousands of its own hot spots with over 20,000 more through the Cablevision/TWC roaming pact, the company is testing the spots as a way to reduce churn or draw new customers.

From “surf and surf” hot spots along the Jersey Shore to train platforms on the commuter corridor between Comcast’s Philadelphia backyard and New York City, the MSO is looking to reach consumers where they are likely to be moving throughout the day, allowing them one last chance to check email before boarding the train to work.

The point is to provide the sense of mobile access to Comcast services outside the home.

“The cable industry has in interest in the continuing success of Wi-Fi as a way to provide another facet to a home broadband account,” Dan Brenner, former head of regulatory affairs at NCTA and currently a partner at Hogan Lovells, said.

That means the FCC also has an ally in the cable industry in pushing for the flexibility to free up more wireless spectrum.

CABLEVISION WI-FI BY THE NUMBERS

200,000: Approximate number of Cablevision subs using Wi-Fi every day

400,000: Number of customers who used Wi-Fi in January

1 million-plus: Average number of daily Internet accesses

50 million: Number of customer Internet sessions per year in 2010

187 million: Number of customer Internet sessions in 2011

5 billion: Customer online WiFi minutes last year

SOURCE: Cablevision Systems