Higher demand for smartphones and tablets coupled with
increased usage of social networking sites, which allow users to
always stay connected with each other while on the move, has
Time Warner Cable Inc.
) to double its Wi-Fi hotspot deployment by the end of 2013 from
10,000 Wi-Fi hotspots last year.
Time Warner Cable has deployed lesser number of Wi-Fi access
points in New York City; Charlotte, N.C; and Kansas City compared
with Wi-Fi installations in Los Angeles during the same period
The Wi-Fi comes for free to Time Warner Cable customers using
cable modem to access internet. Increased deployments of Wi-Fi
hotspot will not only drive value for its customers but will also
offer multiple platforms for data usage, thereby improving data
traffic at lowest possible cost.
Recently, Time Warner Cable declared its fourth quarter 2012
financial results where the company added 75,000 residential
High-Speed Data subscribers, driving its high-speed data revenues
by 17.2% year over year to $1,346 million.
Such robust growth in data revenues has induced Time Warner
Cable to enhance the quality of its network service by spending
nearly $17 million to roll out more than 20,000 Wi-Fi hotspot
connections by the end of 2013.
Moreover, in 2012, Time Warner Cable together with other cable
Cablevision Systems Corporation
), Bright House Networks and Cox Communications entered into
long-term agreements to share each others' Wi-Fi hot spots in
50,000 public locations, thereby surpassing
) 30,000 Wi-Fi access points.
So it is highly anticipated that we will see such rapid
increase in Wi-Fi hot spots by telecom and cable companies going
forward as the demand for data usage continues to rise. Moreover,
huge spectrum crunch in the U.S. will further bolster the growth
of Wi-Fi access points going forward.
Currently, Time Warner Cable has a Zacks Rank #3 (Hold).
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