Cellular Giants Win Big in Spectrum Auction > Comcast & TimeWarner making wireless internet move?

At the same time, cable companies like Time Warner and Comcast have teamed up with Sprint Nextel to bid on chunks of spectrum to expand their limited presence in the wireless business. Analysts said the cable companies were likely to use the spectrum to offer wireless Web access, not necessarily phone service.

Of the $13.3 billion in bids registered thus far, $2.2 billion has come from the cable providers, bidding together in a consortium with Sprint, the third-largest cellular carrier.

Emerging technology that lets wireless phones use data networks instead of traditional cellular networks to connect calls could give the cable companies a route into the phone market.

More likely, analysts said, cable companies are buying spectrum because they are interested in building a network of wireless hubs to let their customers log onto the Internet not just at home, but also in cafes, parks and hotels.

The cable consortium has bid for dozens of licenses, some of which cover the New York metropolitan area, where Time Warner Cable provides service, as well as Philadelphia, Washington and Chicago, where Comcast is the main provider. It has also bid for licenses in Los Angeles, San Francisco and other cities.

said by fAcEtIOUs:

Looks like the cable companies are going to try and cut the city WiFi networks off at the pass.