Cablevision to launch WiFi phone service for data-hungry users
Cablevision said the phone service was the first of its kind to be launched by a cable company.
(Reuters) - Cablevision System Corp said on Monday it would launch in February a wireless Internet phone service to give users an alternative to pricier data plans from cellular companies such as AT&T and Verizon.
The "Freewheel" phone service, which runs on any WiFi connection, is an attempt by Cablevision to retain and potentially add subscribers at a time when cable companies are losing out to lower-priced, bundled TV and Internet services from telecom firms.
Cablevision said the phone service was the first of its kind to be launched by a cable company and aims to tap users seeking to download unlimited amounts of data on their mobile phones using WiFi, which is less expensive than a cellular connection.
Such services could pose a challenge to traditional telecom carriers. Currently, carrier Republic Wireless and Massachusetts-based startup Scratch Wireless offer users similar services that use WiFi to control data costs.
"There has been a dramatic shift in how consumers use their mobile devices: today, it s all about data, and WiFi is now preferred and clearly superior to cellular," Kristin Dolan, chief operating officer of Cablevision, said in the statement.
Cablevision, controlled by New York s Dolan family, has been investing in its "Optimum" WiFi network since 2007, setting up over 1.1 million WiFi hotspots or access points in New York, New Jersey and Connecticut.
Cablevision s WiFi phone service will be offered at $29.95 per month and $9.95 per month for subscribers of its "Optimum Online" service. It will be available exclusively on the Motorola Moto G smartphone that users will have to purchase, the company said.
The $180 Android phone will be sold to "Freewheel" users without a contract at a discounted price of $99.95, it added.
