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Bright House Spins New Web Deal

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By RICHARD MULLINS

The Tampa Tribune

Published: May 8, 2008

Some help could be coming soon for Tampa Bay customers frustrated with choppy wireless Internet access.
Bright House Networks is making a $100 million bet on the emerging WiMax wireless Internet service that's several times faster than the newest cellular links and can cover an entire region.

Bright House, the Bay area's largest cable TV provider, agreed to invest in a new wireless corporation that's being formed and backed by some of the nation's technology powerhouses, including Sprint Nextel Corp., Google Inc., and Intel Corp.

The company did not disclose an exact timeline for when it expects to begin offering the service in the Tampa Bay region. But the partnership hopes to begin selling WiMax service by 2010.

If successful, backers of the venture hope to launch high-speed wireless Internet service across the nation, providing new service to areas with more than a combined 120 million people.

For consumers in the Tampa Bay area, the deal means Bright House could begin offering a powerful wireless alternative that's much faster than links now used to connect Blackberries or notebook computers.

Under the deal, Bright House also will become a reseller of Sprint cellular phone service. That means Bright House could gain a long-awaited fourth service besides cable TV, phone and wired Internet service - rivaling the "four play" of services now offered by Verizon in the Bay area.

"This broadband wireless relationship will help us to continue to provide the best possible competitive services for our customers, today and in the future," said Robert J. Miron, chairman and chief executive officer of Bright House Networks.

Though little known outside the wireless industry WiMax technology holds promise for customers looking for fast, mobile data service beyond current cellular or Wi-Fi service offered at coffee shops, airports, and other connection hubs.

While Wi-Fi service can be as fast as some cable broadband service at 1 megabyte per second speed, it only carries over a short range, sometimes just 100 feet.

WiMax, by contrast can operate at up to 5 megabytes speed and reach four to six miles. That means cellular towers with WiMax transmitters could cover an entire region with service. So customers wouldn't be tied to a coffee shop or have to rely on a slower cellular signal for access.

Pricing for the service hasn't been announced, though Clearwire's current WiMax service can cost about $50 per month for mobile access.

The deal is a complex partnership orchestrated by Sprint and Clearwire Corp., a Kirkland, Wash.-based start-up venture formed by wireless pioneer Craig McCaw. Intel will contribute technology for the WiMax service it developed. Google Inc. will develop Internet service, search technology, and the project will support Google's mobile software system "Android."

Comcast, Time Warner cable and Bright House will be the distributors of the WiMax service. Bright House will spend $100 million to buy a portion of the new Clearwire corporation being created under the deal.

Analysts say the new partnership, valued at $14.5 billion, will have a two-year head-start on rivals Verizon Wireless and AT&T Inc., which are just beginning to sketch out plans for their next-generation wireless networks.

Bright House, based in Syracuse, N.Y., is the nation's sixth largest cable company, with about 2.4 million customers nationwide including in markets like Tampa, Orlando, Bakersfield, Calif., and Indianapolis.

Information from the Wall Street Journal was used in this report. Reporter Richard Mullins can be reached at (813) 259-7919 or rmullins

@tampatrib.com.

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