Monday, January 26, 2015

Cablevision's Service Shift

Lately, it seems that we have been shifting our means of phone communication from cellular service, to wi-fi. New operating systems for Apple and other companies let users text, send data, and most recently, talk on the phone through a wireless internet connection. Less and less often we have to worry about bad cell reception because many places including homes, schools, and businesses have wireless networks for people to use their smartphones to talk and text. Emily Steel stated in her New York Times article that more than half of smartphone browsing comes from internet connection. In that same article, Steel presents Cablevision's new addition to this phenomenon, Freewheel.

Freewheel is a service that gives customers unlimited talk, text, and data for a much lower rate than wireless companies like Verizon and AT&T. The catch is that this is only available when the user is on wi-fi and is only compatible with a Motorola Moto G smartphone. With wi-fi in homes and "more than 1.1 million hot spots for both indoor and outdoor access in the New York metro region" this service seems awesome with the only downside being traveling because wi-fi is not consistent or everywhere. But, for someone like a stay-at-home mom or retiree, this is all they need since they are basically always on wi-fi in their homes.

While the service itself is great, a big point to note is the future building on Cablevision's revolution. Other cable providers are sure to jump on this train and release their own versions of wi-fi exclusive phone plans and this will become a competition among the cable companies. But further than that, wireless companies will have to combat this release that threatens their own business. If they lose a large sum of customers due to virtually the same service for a cheaper price that appeals to a specific market, they will need to retain the customers they've had for years. These wireless companies would be smart to work with the cable companies for a few reasons. Freewheel and its eventual similar services are simple and inexpensive and the downsides are fewer than those of wireless phone service. With Freewheel, you are either on or off wi-fi, so you know where you can and can't use your phone, which is convenient so you can stay in areas that are wi-fi friendly. For wireless, cellular service is always up and down, not to mention it is falling off in popularity. If companies like Verizon and AT&T were to work with cable companies, the joined forces could perfect the spotty presence of wi-fi and make it more widespread so most, if not all, of the country is wi-fi friendly, much easier than fixing and improving cellular coverage. It is no secret that wi-fi is taking over, so why not focus on improving expediting the eventual monopoly?

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