Time Warner Cable to Ramp WiMAX

Time Warner Cable Inc. (TWC) has decided to speed up its investment in the next-generation (4G) WiMAX venture in 2010. From December 2009, the company has started offering WIMAX services in Dallas, and parts of North Carolina and Hawaii.

Under the brand name of “Road Runner Mobile,” this super-fast mobile broadband network supports Internet speed of 6 Mbps with a monthly fee between $40 and $80 for customers with at least one other Time Warner Cable service. This service provides 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.
 
Time Warner Cable utilizes the nationwide WiMAX network infrastructure being set up by Clearwire LLC (CLWR). Through WIMAX, the company had also planned to add new mobile services in the future, such as the ability to program a DVR from a mobile device and take the video content along while moving. Management announced that the company is working with Clearwire and Sprint Nextel Corp. (S) to develop a 4G wireless voice product for WiMAX network. 

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.

During fiscal 2009, the company generated $1.92 billion (up 10.2% year-over-year) of free cash flow (cash flow from operations less capital expenditures). Therefore, investing more in WiMAX will not be problematic for Time Warner Cable

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