Cox Communications Takes On AT&T, Verizon With Mobile Offering

budney · Nov 19, 2010

Cox Communications Takes On AT&T, Verizon With Mobile Offering

By Kelly Riddell - Nov 18, 2010 9:00 PM PT

Cox Communications Inc. is becoming the first U.S. cable company to offer a mobile-phone service as it looks to challenge incumbents AT&T Inc. and Verizon Wireless by bundling wireless handsets with Web and TV.

Cox is starting its consumer mobile service in three markets today -- Orange County, California; Omaha, Nebraska; and Hampton Roads, Virginia, Stephen Bye, Cox’s vice president of wireless, said in an interview.

The third-biggest U.S. cable operator is taking on phone carriers AT&T and Verizon, which are expanding onto cable companies’ turf with TV services. Cox will market its mobile plans as “Unbelievably Fair,” giving money back for unused minutes and tying in free Cox TV, Internet, or landline upgrades. Cox said in May about 24 percent of its customers said they are willing to switch to its mobile service.

“We recognize that we have some very formidable competitors in this space,” Bye said. “Customers will be attracted to our service because they’ll get more value out of our bundled offering than they will with alternatives providers.”

Cox is looking to win over consumers by addressing some common complaints about the incumbent providers’ service, such as overage charges and paying for unused minutes, Bye said. The Atlanta-based company will offer alerts when a customer is approaching the maximum number of minutes, and give 5 cents back for every unused minute, up to savings of $20 a month.

Quadruple Play

Privately-held Cox is taking a different wireless approach than larger peers Comcast Corp. and Time Warner Cable Inc., which are using Clearwire Corp.’s so-called 4G network to sell data-only wireless service in select markets. Cox will use Sprint Nextel Corp.’s 3G network for its wireless service, and is also building its own network, Bye said.

Cox is the first U.S. cable operator to test if there is consumer demand for a so-called quadruple play -- a package of phone, TV, Web, and wireless service -- and if it makes economic sense for cable operators to offer mobile service, said Craig Moffett, an analyst at Sanford C. Bernstein & Co. in New York.

“Cox has a steep mountain to climb in that they are late to the party in a crowded industry,” Moffett said. “What made the bundle of voice, video and data work in the cable business was their cost advantage -- they could do all three services on one network with one cost. Cox doesn’t have that advantage in the wireless business.”

Cox declined to comment on the cost of building its mobile network and what it pays Sprint to use its network. Bye also declined to comment on Cox’s wireless sales expectations for next year. The company doesn’t plan to sell its mobile service nationally, only in the areas where it operates, Bye said.

Android Handsets

Small mobile carriers like MetroPCS Communications Inc. and Leap Wireless International Inc. have achieved market share of 8 percent to 13 percent in the areas where they’ve been offering service for at least five years, according to Romeo Reyes, an analyst at Jefferies & Co. in Stamford, Connecticut.

Cox will sell monthly mobile-service contracts starting at $39.99. Customers will receive free mobile-to-mobile calling between Cox cellphones and landline phones.

Google Inc.’s Android operating system will be available on the smartphones that Cox offers, including the HTC Desire, Motorola Milestone and LG Axis. Cox will expand and refine its handset selection based on customer demand, Bye said.

The devices will be available to purchase at newly opened Cox Solution Stores in all three regions where the service is available.
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Cox Communications Takes On AT&T, Verizon With Mobile Offering - Bloomberg

M in LA · Nov 19, 2010

For me, this is kind of a "why bother?" option... Cox has been so late getting this off the ground (since they've delayed the launch for months now).

Is this available only to people within their cable service area? If so, that's a very limited pool in Southern California. This leaves only southern Orange County right now. What about the South Bay of L.A. County and San Diego areas they serve? What about the other 3 million plus households in Greater L.A. not serviced by Cox?

This is too little, too late, IMO.

JFB · Nov 19, 2010

Thanks for posting this Mike.
There is also a story in Wireless Week here: Cox Launches 3G, Ending 11-Month Wait | Wireless Week

And here is the text of their press release:

Cox Unveils Unprecedented 'Unbelievably Fair(SM)' Wireless Plans, Bringing More Value to the Bundle

MoneyBack Minutes(SM) and Free Usage Alerts(SM) Reduce Wireless "Gotchas;" Customers Enjoy Bundle Benefits(SM) - Faster Internet, Free Premium Channel or Free Long Distance

ATLANTA, Nov. 19, 2010 /PRNewswire/ -- Cox Communications today unveiled its "Unbelievably Fair" mobile phone and high-speed Internet service throughout Hampton Roads, Va., Omaha, Neb. and Orange County, Calif. The addition of wireless to Cox's existing bundle of video, Internet and landline telephone services brings an unprecedented value proposition to consumers and introduces greater ease in integrating home and mobile services.

Today, Cox builds on its long history of innovation and customer service excellence with the launch of Cox Wireless. The company's market research revealed that consumers wanted a more fair approach to wireless and Cox is responding with MoneyBack Minutes. Cox is the first wireless carrier to provide cash back on customers' bills for unused minutes each month – up to $20 a month – a significant departure from the industry standard by which consumers lose unused minutes or carry them over from month-to-month with no monetary benefit.

"Wireless consumers have long been underserved on customer service," said Stephen Bye, Cox's vice president of wireless. "With our customer-centric approach, we're delivering much more than excellent network coverage and call quality. We went a step further by introducing new services and features to the Cox bundle that were built on fairness. Plus, with a robust portfolio of devices, a nationwide 3G network and award-winning customer service customers have come to expect from us, Cox delivers on the most important attributes of wireless service."

Cox's in-depth consumer research found that consumers are frustrated with surprise overage charges on their monthly bills. To further its commitment to delivering a more fair approach to wireless spending, Cox Wireless automatically provides customers with free text message Usage Alerts when they approach their maximum number of monthly minutes and messages. This "no surprises" service enables customers to adjust usage habits or upgrade rate plans to avoid overage charges. Cox also makes it easy to save minutes by providing free Mobile-to-Mobile and calling between the customer's Cox Digital Telephone and Cox Wireless phone.

To further sweeten the reward for existing customers, Cox's bundled customers can choose one free upgrade when they add Cox Wireless. With Bundle Benefits, Advanced TV customers can choose a free premium entertainment channel such as HBO, Showtime, Starz or Cinemax or Cox Movie Pak, which includes Encore, Epix, Sundance and Vutopia; high-speed Internet customers can upgrade from Preferred to Premier; or home telephone customers can add unlimited domestic long distance calling on their Cox Digital Telephone service.

"Cox's early entry to the telecommunications space has served it extremely well," stated Irene Berlinsky, senior research analyst with IDC. "Two-thirds of Cox's customers subscribe to multiple services, and a full one-third take all three currently-available services. With the addition of wireless services, Cox has devised an approach that is a natural extension of its bundle, providing value and simplicity which should resonate with consumers. An integrated wireless play also gives Cox the opportunity to lay the foundation for next-generation multi-screen innovation."

Retail Presence

With the arrival of Cox Wireless, mobile solutions are now available at the recently unveiled Cox Solutions Stores. At the heart of the in-store experience is the Learning Lounge, a comfortable area where a friendly and knowledgeable Solutions Educator is available to help customers get the most from their wireless device and mobile experience as well as other Cox products and services, such as programming your DVR from multiple devices.

"Throughout the Solutions Store, customers learn how easy it is to use many of the features and services of Cox Wireless, leaving with personalized knowledge that makes them feel excited and empowered in the wireless world," stated Tracy Nolan, Cox's vice president of retail. "The retail experience provides complete entertainment and communications solutions, providing the convenience of one-stop-shopping and making it easy for consumers to see the 'wow!' of integrating Cox products and services."

Wireless Devices

From Android™ enabled smartphones to feature-packed devices with BREW applications, Cox Wireless's portfolio of devices will meet the needs of every customer and continue to expand. Several of the devices were recently selected by Mashable.com as "hot electronics this [holiday] season." The devices available this holiday season* include:

HTC Desire™, an Android enabled touch smartphone with WiFi, 1 GHz processing speeds and HTC Sense™ interface
Motorola Milestone™, an Android enabled smartphone with WiFi, Qwerty slider keyboard, advanced processor with 3G speed, 3.7-inch screen and 5-megapixel camera
LG Axis™, an Android enabled smartphone with 3.2" (480x 800) touchscreen and slide out QWERTY keyboard, Wi-Fi and 3.0 MP camera which support panoramic shots
HTC Hero™, an Android enabled smartphone with WiFi and 3.2-inch touch screen
HTC Wildfire™ , an Android enabled smartphone with WiFi featuring app-sharing widget that works on Twitter, texts or email with a 3.2-inch touch screen
Samsung Messager Touch™, Brew enabled multimedia device featuring a 2.6-inch touch-screen, QWERTY keypad, pre-loaded widgets and 100 MB of storage
Samsung Profile™ , stay connected on the go with this 3G messaging platform on a BREW operating system. Includes a QWERTY keyboard with 2.4" screen and 2.0MP camera
Plus, several other feature phones and the Cox 3G U210 On-the-Go(SM) Modem, for Cox High Speed Internet On-the-Go(SM)

Click here to view the comprehensive device portfolio.

To help simplify customers' lives, the Cox Wireless experience will debut with popular Cox features already integrated into many of the mobile devices, such as the ability to program the home DVR and see TV listings from their mobile device. Similarly, Cox customers with an Android device can easily download the Cox Remote Guide Access app from the Android Market to also program their home DVR and see TV listings from their mobile device. This app marks the beginning of many Cox apps that will soon be available to provide greater convenience and mobility for Cox features and services. Additional features to simplify customers' lives include Universal Contact Manager to securely manage, backup and organize all Cox High Speed Internet and Cox Wireless contacts in one place; and Voice Mail to Text which converts voice mail messages to text and delivers them to the Cox Wireless device as a text message, giving customers the freedom to read messages and respond without ever dialing. Cox will continue to enrich and evolve its wireless experience by adding new features and services to enjoy while on-the-go.

For more information about Cox Wireless service and details on devices and all rate plans, including images and videos, visit www.unbelievablyfairwireless.com or www.cox.com (choose Hampton Roads, Va., Omaha, Neb., Orange County, Calif.)

Social Media: #CoxWireless, #UnbelievablyFair, #MoneybackMinutes, #BundleBenefits, #CoxSolutionsStores, #StephenBye, #TracyNolan

*Timing may vary

About Cox Communications:

Cox Communications is a broadband communications and entertainment company, providing advanced digital video, Internet, telephone and wireless services over its own nationwide IP network. The third-largest U.S. cable TV company, Cox serves more than 6 million residences and businesses. Cox Business is a facilities-based provider of voice, video and data solutions for commercial customers, and Cox Media is a full-service provider of national and local cable spot and new media advertising.

Cox is known for its pioneering efforts in cable telephone and commercial services, industry-leading customer care and its outstanding workplaces. For seven years, Cox has been recognized as the top operator for women by Women in Cable Telecommunications; for five years, Cox has ranked among DiversityInc's Top 50 Companies for Diversity, and the company holds a perfect score in the Human Rights Campaign's Corporate Equality Index. More information about Cox Communications, a wholly owned subsidiary of Cox Enterprises, is available at www.cox.com and www.coxmedia.com.
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JohnCena83 · Nov 20, 2010

I don't care for Cox but you think they would have done this a long time ago.

larry · Nov 20, 2010

Mobile Mike said: ↑

For me, this is kind of a "why bother?" option... Cox has been so late getting this off the ground (since they've delayed the launch for months now).

Is this available only to people within their cable service area? If so, that's a very limited pool in Southern California. This leaves only southern Orange County right now. What about the South Bay of L.A. County and San Diego areas they serve? What about the other 3 million plus households in Greater L.A. not serviced by Cox?

This is too little, too late, IMO.
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They are currently using Sprint's network in Orange County. They don't have a physical network of their own.

M in LA · Nov 20, 2010

larry said: ↑

They are currently using Sprint's network in Orange County. They don't have a physical network of their own.
Click to expand...

Even so, there are already too many other options out there. There isn't anything they're offering that's any better than other MVNO's out there.

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Cox Communications Takes On AT&T, Verizon With Mobile Offering

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