Wireless World: Convergence arrives

Nov 05, 2005

The wireless deal announced by a consortium of cable companies grabbed all the headlines this week, but analysts have been predicting the convergence of such technology capabilities for several years now. More partnerships like this are likely to come in the near future, experts told UPI's Wireless World.

Moreover, future deals may go even further than the joint venture or partnership stage. This week's partnership among Comcast, Sprint, Cox, Time-Warner and Advance-Newhouse Communications is finally accelerating that long-expected move toward "convergence" of technologies, is increasing the competition in the wireless-services market and is going to lead to new products and services being offered by cable companies.

According to Ranjan Mishra, a wireless industry analyst with A.T. Kearney, the move is bold, yet risky.

"The unique complexity of this deal is unlike other MVNO (Mobile Virtual Network Operator) deals which target specific segments," Mishra told Wireless World. "Given the broad base of cable, the impact of cannibalization could be high."

Mishra said it appears that Sprint and Comcast and the other partners may be able to transform this partnership into the "industry's first truly converged offering ... dramatically altering" the competitive landscape of wireless.

This deal is not just another partnership in the mobile network space, he said, but one that allows the companies to integrate a number of technologies and products. This is called bundling of products. "The higher the integration will be, the better the chances of success," Mishra said.

Other companies are already experimenting with the wireless cable technology, and distribution of network-quality content over wireless outlets is expected shortly. "We have not finalized a wireless agreement yet, but have been involved in trials with several wireless companies," said Susan Robertson, a spokeswoman for Scripps Networks, based in Knoxville, Tenn. "However, Scripps Network programming is appearing on many other platforms, in addition to standard cable. Just this year, we've announced agreements with Verizon for its new FIOS (fiber optic service) technology, with XM Satellite Radio, and we've announced several new broadband channels and the launch of two high definition channels that will go live in early 2006."

Yet another firm, U.S. Digital Television -- a new company in the wireless cable business -- recently began offering wireless cable in three cities in the western United States, a spokesman told Wireless World.

According to a spokesman for the consulting firm Accenture, there are other trends in the industry, such as Internet Protocol TV, where "traditional and nontraditional players are looking for ways to prepare for new content channels and consumer demands."

What technology firms are looking to create, experts said, is a new lifestyle for consumers. That is, they can take their TV technology with them wherever they go, whether they are commuting, and using a mobile phone, or at work, and using a larger digital appliance, experts said. "Technology and content are no longer bound to the device that traditionally delivered it," said a spokeswoman for Amdocs, a provider of customer relationship management and billing software to the cable industry. "This provides new opportunities for cable and telecom providers, as they are now able to blend and bundle services, opening up new avenues of revenue."

Copyright 2005 by United Press International

Explore further: As dust clears, what's next for Sony?

add to favorites email to friend print save as pdf

Related Stories

Nokia plots comeback with Android tablet (Update)

Nov 18, 2014

Nokia is back in the fray. Just months after selling its ailing handsets business to Microsoft, the Finnish company is planning to go back into the consumer market with a new tablet.

Electric cars without drivers

Nov 04, 2014

E-Mobile will park independently in the future and will also be able to find the next charging station without a driver. Researchers are working on electric cars that can travel short distances autonomously. ...

World record in data transmission with smart circuits

Oct 21, 2014

Fewer cords, smaller antennas and quicker video transmission. This may be the result of a new type of microwave circuit that was designed at Chalmers University of Technology. The research team behind the ...

Recommended for you

As dust clears, what's next for Sony?

4 hours ago

The Sony hacking attack continues to deliver more dramatic plotlines than any fictional movie, but meanwhile the movie studio must move forward and tackle the next steps in minimizing the mess. Will Sony ...

FAA, industry launch drone safety campaign

7 hours ago

Alarmed by increasing encounters between small drones and manned aircraft, drone industry officials said Monday they are teaming up with the government and model aircraft hobbyists to launch a safety campaign.

It's down to the wire for online shopping

7 hours ago

As the holiday shopping season winds down, FedEx, UPS and online retailers are using the last few days to try to avoid the problems that occurred last year when severe winter weather and a surge in late orders ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.