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Time Warner Cable has confirmed that it is working with Sprint on a mobile virtual network operation. So the so called quadruple play, or as I like to call it, Four Play, will help TW offer data, video, wireless and telephone service to its customers. Greg […]

Time Warner Cable has confirmed that it is working with Sprint on a mobile virtual network operation. So the so called quadruple play, or as I like to call it, Four Play, will help TW offer data, video, wireless and telephone service to its customers. Greg Gorbatenko, analyst with Marquis Investment Research sees this as a big win for Sprint. “Other cable companies are not far behind in working with FON for wireless, wireline, and high speed offerings, in addition to video backhaul modifications via fiber. Clear to us is that this event is good for FON, but also good for the cable industry since it affords them the opportunity to better compete with the RBOCs,” he writes in his research note, this morning.

  1. I think Greg is still hungover, these MVNO/resell deals are a disaster waiting to happen, just like ClearPay.

    It should be intuitively obvious, but since so few people actually understand wireless, I suspose I should lighten up abit, and speak slowly so wallstreeters don’t get confused.

    Lets connect some dots that need connecting:
    1) Om, your wrote Broadbandits, and told the tale of crimes of co-mission.

    2) I submit that these MVNO/resell deals are cousins to your book, in that they are crimes of omission.

    3) Sprint MGT and its boneheaded board are making stupid economic deals all to pump up short term results, etc. and thus line their own pockets at the expense of actually doing any heavylifting.

    Andrew Sorkin recently stated the same thing in Lamest deals of 2004 (1-2-05 NYT),
    “Gary Forsee

    Everyone is going on about the wonders of how you and your company,
    Sprint, acquired Nextel Communications. It’s not a bad deal, really.
    But did you do it for shareholders, or to keep your job? Had you been
    willing to put in the work, you could have spent the next six to nine
    months selling your fixed-line business and then selling the wireless
    business on its own, for a lot more money.”

    3) What I’ve failed to see any ink about is how asymmetric these MSO deals are. If the 3 or 4 play strategy is the best route (and I don’t ascribe to it) then why and God’s green earth isn’t FON getting RESELL rights on top of the MSO coax plant?

    Here’s my prediction for 2005.

    The Nextel-Sprint merger doesn’t do much of anything to soakup the massive oversupply of wireless capacity, but Nextel agreed to it, to take out the weakest player (and dumbest operator), to lower future risks.

    I fully except Nextel MGT to throw Sprint MGT out the door after closing the deal, and then I expect trouble for the current Sprint MVNO clients. The flashpoint will be ESPN Mobile.

    PS. A wise man once said, those who can’t sell, must resell.

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