U.S. Cable Operators to Have 250K Wi-Fi Hotspots in Place by 2014, Heavy Reading Finds

Cable is jumping into Wi-Fi and is expected to spend $350M on 250,000 cable Wi-Fi hotspots by mid-2014, says Heavy Reading Cable Industry Insider

Jun 10, 2013

BOSTON, June 10, 2013 /PRNewswire/ -- The cable industry has embarked on its boldest mission yet to make wireless a part of cable's product portfolio, and Heavy Reading predicts the industry will have spent more than $350 million putting in place more than 250,000 cable Wi-Fi hotspots by mid-2014, according to the latest report from Heavy Reading Cable Industry Insider (www.heavyreading.com/cable), a subscription research service from Heavy Reading (www.heavyreading.com).

From Wired to Wireless: Cable Uses Wi-Fi to Extend Its Reach explores cable's Wi-Fi deployment, the market drivers and its implications for cable operators and suppliers. Included is a look at six suppliers that are supporting cable's Wi-Fi efforts.

For a list of companies covered in this report, please see: http://twimgs.com/audiencedevelopment/LRHR/PDFS/cii0613_companies.pdf

"Major cable MSOs are embracing Wi-Fi in a comprehensive manner," notes Craig Leddy, research analyst with Heavy Reading Cable Industry Insider and author of the report. "They are using Wi-Fi to extend cable broadband services around and outside the home, and they are setting up public Wi-Fi hotspots to provide free wireless broadband service."

By about this time in 2014, Heavy Reading projects the industry will have spent more than $350 million on Wi-Fi infrastructure, and that more than 250,000 cable Wi-Fi hotspots will be in place, Leddy says. "The cable industry has been searching for an opportunity to provide wireless services and now it has its chance with Wi-Fi," he continues. "While direct revenue is not easy to measure at this stage, sources say there is early evidence that Wi-Fi is having a positive effect on subscriber retention. The future business opportunities are tantalizing, even though they are somewhat speculative at this point."

Key findings of From Wired to Wireless: Cable Uses Wi-Fi to Extend Its Reach include the following:

  • U.S. MSOs are rapidly adding Wi-Fi service, deploying about 150,000 public hotspots so far.
  • Cable will surpass 250,000 hotspots in 2014, spending more than $350 million on access points alone.
  • MSOs are using Wi-Fi today to extend broadband services – including video – outside the home.
  • Five MSOs are enabling cross-territory roaming through CableWiFi, which will be aided by HotSpot 2.0 roaming initiatives.
  • Emerging opportunities include business services, mobile offload and, although speculative, a potential cable MVNO phone service with Verizon.

From Wired to Wireless: Cable Uses Wi-Fi to Extend Its Reach is available as part of an annual subscription (six issues) to Heavy Reading Cable Industry Insider, priced at $1,595. Individual reports are available for $900.

To subscribe, or for more information about Heavy Reading Cable Industry Insider, please visit: www.heavyreading.com/cable. For more information about other Heavy Reading Insider research services, please visit: www.heavyreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

David Williams
Global Director of Sales, Research
Heavy Reading

Press/analyst contact:
Jennifer Baker
Marketing Director, Light Reading Communications Network

About Heavy Reading (www.heavyreading.com)
Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry. As a division of UBM Tech (tech.ubm.com), Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

SOURCE Heavy Reading