Time Warner Launches WiMAX

Time Warner Cable Inc (TWC - Snapshot Report) will launch the 4G WiMAX mobile broadband services in three North Carolina markets from Dec 1. The WiMAX connection will offer wireless data transmission at speeds five times faster than the 3G connections currently provided by the company. Under the brand name of “Road Runner Mobile”, this super-fast mobile broadband network will support Internet speed of 6 Mbps with a monthly between $40 and $80 for customers with at least one other Time Warner Cable service. 

The “Road Runner Mobile” service will provide its subscribers the convenience of mobility so that the customers can enjoy the WiMAX services on their devices anywhere they go within their service circle. The company also said that it plans to add new mobile services in the future, such as the ability to program a DVR from a mobile device and for customers to take their video content with them while moving. 

With the deployment of WiMAX network, Time Warner Cable has become a formidable player to challenge its much bigger telecom rival Sprint Nextel (S - Analyst Report) which is also likely to start offering WiMAX services in North Carolina from early December. Both Time Warner Cable and Sprint Nextel will utilize the nationwide WiMAX network infrastructure being set up by Clearwire LLC (CLWR), a specialized WiMAX broadband service provider. Time Warner Cable will expand its WiMAX coverage in Dallas , Texas and Honolulu and Maui, and Hawaii during the next few months. 

We believe early entry into 4G mobile broadband market will be incrementally positive for the company. Time Warner Cable, the second largest cable MSO in the U.S. , will now be able to effectively diversify into phone and Internet services industry with next-generation state-of-the-art technology. The U.S. WiMAX market is getting quickly activated. Comcast Corp. (CMCSA - Snapshot Report), the largest cable MSO in the country, is offering WiMAX under the "High-Speed 2go" brand, with services already going in Atlanta and Portland , and launches expected soon in Dallas , Chicago , and Philadelphia , as well. Comcast will also utilize Clearwire’s network. 

Furthermore, Clearwire has also taken a decision to roll-out its own standalone WiMAX service under the brand name of “Clear” in North Carolina in the near future. Telecom giants like Verizon Wireless (VZ - Analyst Report) and AT&T (T - Analyst Report) may also start offering WiMAX services from the first half of 2010. Bright House Network, a cable MSO and a member of Clearwire WiMAX partnership may also follow suit.