Subsidized tablets with content could be a key differentiator for MSOs struggling in the wireless market

I'm a wireless reporter by trade, and I've been watching the cable industry's starts and stalls in the wireless market for some time. My conclusion, which isn't that profound, is that cable providers talk a great deal about the value of wireless but struggle to make any sort of dent in the market or capitalize on offering wireless services as part of a bundle.

Back in 2008, it was clear that cable operators were anxious to grab a piece of the fast-growing wireless pie, but the trend today among MSOs seems to be one of spending very little money while continuing to experiment with service offerings and pricing strategies.

Most recently, Cox Communications decommissioned its 3G network infrastructure to continue using Sprint Nextel's (NYSE: S) CDMA network for its wireless service. "In continuing with our successful wholesale model for 3G wireless services, we will accomplish speed to market while achieving greater operational efficiencies from a wholesale model that continues to improve," Cox spokesman David Deliman told sister publication FierceWireless back in May.

Cox had originally planned to build its own 3G network using 1xEVDO Rev. A technology--and use the wireless spectrum it acquired by bidding in the 700 MHz spectrum auction and the AWS spectrum auction (in the AWS spectrum auction it bid as part of the SpectrumCo joint venture). Its network rollout experienced a number of delays.

Meanwhile, Comcast (Nasdaq: CMCSA) and Time Warner Cable (NYSE: TWC) buy network capacity from Clearwire (Nasdaq: CLWR) to create their own service offerings. Time Warner Cable seems to consistently be in the experimental stage with its WiMAX offering.

Comcast at one point had big plans for WiMAX, including delivering TV over WiMAX and offering femtocells to deliver wireless to the home. Today, while it bundles WiMAX service, that service isn't mentioned much in financial conference calls.

Instead, I see MSOs back at square one talking up the need for wireless, but doing little about it. 4G is now the big opportunity, they say without any specific plans.

Said Kelly Williams, Cox's vice president of wireless products, in a recent interview with sister publication FierceWireless: "We think providing 4G is an absolute requirement relative to providing service to our customers in the future. And we believe they will be demanding that at some point in the future ... We're still really in the middle of a lot of discussions with a lot of different entities, and doing strategic work internally, so it's difficult for me to really comment beyond that."

What cable needs is a key differentiator that goes beyond bundling traditional services. I like the idea of a cable-subsidized 3G/4G tablet with an extension of cable programming. Services such as HBO GO and CNN have become hits on the iPad and other mobile devices. The opportunity lies in the fact that mobile operators are subsidizing these devices very little at this point and the majority of devices are being sold in third-party retail.

It's already being piloted on the publishing side with the Philadelphia Inquirer and its sister Philadelphia Daily News introducing pilot programs that see them selling Android tablets with their content already built in at a discount. Icons on the tablets' home screens will take users to digital versions of both newspapers.

"No one in the U.S. has bundled the device with content," Greg Osberg, CEO and publisher of the Philadelphia Media Network, told Adweek. "We want to gain significant market share in this area, and we want to learn about consumer behavior. Our goal is to be the most innovative media company in the United States."

There is likely a number of ways for MSOs to bundle devices with premium content that would finally differentiate their service offerings from everyone else's offerings.--Lynnette