28 October 2008

Cox launching mobile phone network

I found this story over at USA Today interesting. Apparently, Cox, a cable TV operator, has become convinced that better profits can be achieved by building and operating their own mobile network than becoming an MVNO. Either they are being unrealistic about the cost and expertise required to operate a new technology to them in a completely new competitive marketplace, or they have done a sober, realistic assessment and believe that the returns from bundling and close operational coordination are sufficiently high.

p>My guess is the former is true. It will be hard for them to compete with nation-wide, facilities based carriers with established brands. Remote control of entertainment is a relatively new idea (and it may not be bad), for which future returns are quite uncertain. Furthermore, how difficult would it be for someone to develop an app that runs on Windows Mobile, Symbian, etc. that could do essentially the same thing?

Olga Karif over at BusinessWeek is also skeptical, though for different reasons.

1 comment:

Fatos said...

Maybe if they employ something innovative, that will necessarily reduce the costs and also they employ it in limited areas, it will be feasible.