The big news in wired broadband this week was Cablevision’s decision to pump 101 Mbps into homes starting May 11. This is an unprecedented speed level, though at least one competitor has called the offering a “parlor trick,” claiming there is no demand for such speeds. This same competitor also called Cablevision’s Wi-Fi offering a “marketing trick,” though we know that customers loved the new service. The demand is so great, in fact, that Cablevision will boost Wi-Fi speeds to 3 Mbps in May.
Both Cablevision and Comcast have done a good job of responding to the increased demand for Verizon’s FiOS service. While it would cost hundreds of millions, maybe billions for these cable companies to run fiber to the home like Verizon does, it costs them quite a bit less to build out WiFi hotspots. It appears customers are responding, meaning they could take this Wi-Fi business a bit further. That’s all the better for connectivity.
Before the next speed increase, perhaps Cablevision should look to trains and busses for expansion. They could recapture a swath of commuters if they do so.
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