Executive Interview: Cox’s Stephen Bye: Ready for Wireless competition

Cable telecom giant Cox Communications Inc. is set to enter the highly competitive wireless space in a big way. The company is in the midst of building out its own CDMA wireless network to support customers as well as launch services as a mobile virtual network operator using Sprint Nextel Corp.’s CDMA network. The company also has plans to deploy LTE technology on its network in support of higher-speed data services.
Cox had previously attempted a wireless play through the ill-fated Pivot agreement between a number of cable companies and Sprint Nextel. A number of those cable competitors have since forged their own mobile play through an MVNO agreement with WiMAX provider Clearwire Corp.
Stephen Bye, VP of Wireless at Cox, will play an integral part in the initiative as he will be responsible for the company’s wireless products and services strategy. Bye will also establish a long-term vision for wireless and support field operations during the planning, deployment and ongoing operations.
RCR Wireless News: The wireless market has seen a dramatic price war break out over the past 12 months with a number of prepaid operators driving down their unlimited calling plans to $50 and less. In such a competitive environment, how does Cox expect to uniquely position its offering?
Stephen Bye: Competition is not new to us. We have been competing in the video, voice and data business, both for consumer and business customers, for a number of years. We are looking forward to introducing some additional wireless competition in a market which has experienced significant consolidation in the last several years. Ten years ago, only Cox, a cable company, had the flexibility to introduce simpler telephone plans to the marketplace. And now, with wireless, we have the flexibility yet again to introduce a simpler and better wireless offer, making it easy for consumers to continue to choose Cox for their communications services.
RCRWN: Unlike some of your cable company competitors, Cox decided to build out its own wireless network instead of partnering with an established carrier through an MVNO arrangement. Now that Cox is on the verge of launching service, does the company feel vindicated?
Bye: Actually, we do have a relationship with an established carrier, Sprint. This relationship is allowing us to get-to-market quickly while we build our own 3G network in selected markets. While some wireless markets will be launched by leveraging Sprint’s network, we will be in control of all customer-facing touch points for the service. Sprint has a robust network and we are confident that our wholesale use of their network to deliver our service will offer the quality that Cox customers have come to expect.
Over the longer-term, Cox will use both AWS and 700 MHz spectrum for the delivery of wireless services. Together, our AWS and 700 MHz spectrum will enable us to provide competitive wireless coverage, both in terms of availability and with in-building coverage, supporting both 3G and 4G services in our footprint.
Cox’s business decision to pursue its own path for wireless was made for the benefit of our customers. By doing so, we were able to streamline our business planning, network deployment and direct management of our assets for the benefit of the customer experience. It is important for Cox to meet the needs of our customers.
RCRWN: Speaking at the Progress and Freedom Foundation event in Aspen, Colo., last August, Cox President Patrick Esser said he thought the company could capture 20% market share in the wireless space. Is that forecast still valid?
Bye: Over time, we certainly anticipate our existing and new customers will add wireless service from Cox. Ten years ago, we were a new entrant to the landline telephone business and today we have over 40% market share in some of our markets. We expect to experience similar growth in wireless and believe our bundled success gives us a distinct opportunity: more than two-thirds of our customers already buy multiple services from us. In fact, we already have a line into more than 6 million homes that trust us to deliver video, broadband and/or voice services. And now, wireless will position us to deliver an even better experience to our trusted base of customers.
RCRWN: How important will content and the integration of Cox’s cable television offering be to the wireless service?
Bye: We were the first service provider to offer customers a communications and entertainment bundle and a one stop shop for video, telephone and Internet services more than 10 years ago, when there were similar questions regarding the synergy between these services. Today two-thirds of our customers are buying at least two of these within a bundle and one-third of our customers are buying all three services within a bundle. And now, wireless will be another component to the Cox bundle, giving us yet another opportunity to serve the communication and entertainment needs of our customers, adding greater value and enhancing the Cox customer experience.
RCRWN: How important will roaming agreements be for the wireless service?
Bye: Roaming is an important part of any wireless service, and even the largest national providers depend on roaming for coverage.
RCRWN: How far along the CDMA evolution path do you expect to take your network before migrating towards LTE?
Bye: We are still in an early phase of 3G data services adoption and we are well positioned to capture a share of the market growth in wireless broadband services. As we build our network and service, we are planning for the evolution from 3G technology to 4G/LTE and are investing in technologies that will allow for a smooth transition.