Is Cable's WiMAX Business Model Anything Like Wi-Fi?

Cable operators continue to have more questions about wireless services than they do about any other products delivered over their wired broadband plant. They should. Wireless would be the first service not delivered over networks they fully control, and which build relatively logically on what their existing networks offer, in terms of value.

Wireless wouldn't be the first service they've ever offered that must take share from other providers in a saturated market. Cable digital voice clearly has had to take share from incumbent telcos. But core video entertainment and cable modem services essentially were "green field" services that only had to grab attention, not steal market share.

Wireless voice and data are not businesses where cable has existing core competence, and a price "race to the bottom" is not where cable traditionally is most comfortable.

Everybody seems to think mobile video and content is where cable might leverage its formidable assets in a more-logical way. But no killer app yet has emerged.

Should that tack succeed, the business model for WiMAX might be along the lines of how Cablevision Systems Corp. positions it own metro Wi-Fi offerings. Essentially wireless access drives the value and profitability of cable modem service.

So if "cable modem services" provide the business model for providing free metro Wi-Fi, perhaps wired video entertainment will provide the ultimate business model for WiMAX.