Cablevision Systems Corp. is increasingly emphasizing on its WiFi network, called the “Optimum WiFi Network,” for future growth. The company has decided to quickly expand its WiFi network in the New York metropolitan area and intends to launch innovative WiFi products to gain market traction. Cablevision currently has a Zacks Rank #3 (Hold).
At present, Cablevision has installed more than 100,000 WiFi access points. Management has decided to expand this footprint to 1 million by the end of 2014. The company has also decided to deploy WiFi-equipped smartrouters in the premises of broadband customers. The deployment of smartrouters will convert each customer’s residence into a public WiFi hotspot, which other broadband Internet customers can utilize.
Throughout the U.S., cable-MSOs (multi-service operators) are facing intense competitive threats from telecom operators, satellite TV providers and online video streaming service providers. Roaming WiFi connectivity is likely to become a huge opportunity for cable MSOs to minimize their respective customer churn rate. In addition to retail consumers, the business enterprises are likely to become major growth accelerator for mobile WiFi hotspot.
Large cable MSOs has formed an alliance in order to expand WiFi support network. In 2012, five major cable TV operators, namely, Comcast Corp. (CMCSA), Time Warner Cable Inc. , Cablevision, Cox Communications Inc. and Bright House Networks LLC., created a web access network called “CableWiFi.” Another cable MSO, Charter Communications Inc. (CHTR - Analyst Report) is also concentrating on its broadband business.
Subscribers of these cable MSOs can access the Internet through laptops, smartphones, tablets, and other mobile devices through a nationwide shared network of more than 200,000 WiFi hotspots in metro areas also allows the subscribers to access the Internet from any location.
As of Mar 31, 2014, Cablevision had 2.799 million video subscribers, 2.788 million high-speed data subscribers and 2.280 million voice subscribers. In the first quarter of 2014, the company lost 14,000 video subscribers but gained 8,000 subscribers each for high-speed data and voice.