T-Mobile to offer Wi-Fi to Comcast customers

Cable broadband customers will have more incentive to take their home high-speed Internet experience on the road thanks to a new venture to be announced Monday by T-Mobile, the USA’s top Wi-Fi provider, and Comcast, the No. 1 cable and broadband seller.

By Andrew Backover, USA TODAY

http://www.usatoday.com/money/industries/telecom/2004-02-02-tmobile_x.htm

They will unveil a first-of-its-kind partnership that has T-Mobile (DT) marketing its Wi-Fi broadband, available at 4,000-plus retail and airport "hot spots," to Comcast’s (CMCSK and CMCSA) roughly 5 million broadband customers, tops in the USA. As broadband use grows, it potentially can tap many more of Comcast’s 21 million total customers. To entice new subscribers, the companies are offering:

• One free hot spot "day pass" a month through Dec. 31 if they buy a day pass for $9.99.

• A one-month free Wi-Fi trial.

• A month free with a $29.99-a-month annual Wi-Fi subscription.

The venture is the latest salvo as cable, phone and wireless companies fight to sell more services and build customer loyalty.

Phone companies sell satellite TV, wireless, broadband and Wi-Fi. Cable firms have digital TV and are adding phone and faster broadband. Wireless carriers sell Wi-Fi while trying to replace regular phones with cell phones.

Experts say other cable firms could add "mobile" services to fill a product void. As companies add services, consumers could benefit from "increased price competition and also the necessity for superior customer service," says Roberta Wiggins, a wireless expert at researcher The Yankee Group.

Although Comcast users in the past could pay separately to use T-Mobile or other hot spots to access e-mail or home pages, the companies hope the discount promotions will create more demand for both their services. "For consumers who are used to getting the best Internet experience at home, they now can get that when they roam," says Joe Sims, general manager of T-Mobile’s Wi-Fi unit.

The venture targets consumers, home-business owners, frequent travelers and "windshield warriors," such as real estate agents, who are out and about in one city.

Greg Butz, a Comcast business development executive, says customers will learn of the venture through heavy marketing. Users will get separate Wi-Fi bills now, but at some point, charges could appear on cable bills. "Those are kind of tier-two decisions."

Not everyone is sure the Wi-Fi venture will take off. Forrester Research analyst Maribel Lopez says Wi-Fi prices need to drop below $15 a month for demand to take off. She says Comcast and T-Mobile might benefit more if they teamed to sell cell phone service.

T-Mobile and Comcast won’t speculate on future ventures, but they don’t rule them out.