MSOs/ MVNO = BIG TROUBLE for LECs.

The article below should make SBC and Verizon sweat. The consumer market for broadband is dominated by the MSOs. With that broadband came the bandwidth to provide the apps like VoIP. Now with a mobility offering in the mix, a truly compelling argument can be made to those subscribers to completely disconnect from the "phone" companies. This also is a major first step to consumer-based FMC, where a subscriber could have a single number for wireless and home-phone (voip) service. This is going to be very interesting to follow.

Article

The three largest MSOs in the U.S. are close to securing an MVNO (Mobile Virtual Network Operator) agreement with Sprint Nextel, Multichannel News reported in Monday's edition.

The proposed deal, between Sprint and Comcast Corp., Time Warner Cable, and Cox Communications, would give cable a much coveted quadruple play of video, data and landline and wireless voice services. It will also give those operators a path toward a range of other mobile services and applications, including video.

According to Multichannel News, a deal could be completed before the end of November, with service rollouts following in early 2006.

With Sprint as a partner, those operators would not be required to build something from scratch, a move that would be looked upon favorably by Wall Street.

"As such, the relatively limited commitment implied by an MVNO deal is, in our view, appropriate. Investors are likely to be relieved, as well, by the relatively limited capital commitments imposed by such a strategy," wrote Sanford C. Bernstein & Co. VP and Senior Analyst Craig Moffett, in response to the story in MCN.

Kansas-based Sunflower Broadband already resells mobile voice services through Sprint. Time Warner Cable has already disclosed a cellular trial taking place with Sprint in Kansas City.

Sprint also has third-party VoIP partnerships with Comcast, Mediacom Communications, Charter Communications and Cablevision Systems Corp.

MVNO FMC VoIP