Time Warner Cable adding free Wi-Fi hotspots

Time Warner Cable (NYSE:TWC) is going for a new strategy, in theory anyhow: Time Warner Cable subscribers has inked a deal with a Spanish start-up called Fon to allow TWC to turn its Internet access points into WiFi hotspots for about $2.00.

There is a note on this in Wi-Fi Net News outlining this. The ramifications of this are potentially numbing for wired cities trying to bring on a Wi-Fi cloud, and it shouldn't cannibalize subscriber revenues. Consumers are probably a bit concerned about turning their own home internet connection into a Free, or nearly free Wi-Fi zone open to whomever can get on, but businesses could instantly adopt this. Maybe Starbucks (NASDAQ:SBUX) could use this as a replacement (in Time Warner Cable cities) to their cheesy deal they have with T-Mobile, part of Deutesche Telekom (NYSE:DT), that keeps Starbucks from being a true Wi-Fi zone coffeeshop.

Time Warner Cable is a long way from even being in every major city, so this won't kill all ISP's and Wi-Fi providers around the US. But at least this is one more step closer to a true Wi-Fi area for the public. Most homes and businesses are not going to dump their private internet access and risk being cut-off with no support, so this shouldn't cannibalize their subscriber rates.

Could you imagine a video game enthusiast relying on public Wi-Fi for an online Halo tournament? Can you imagine a stock trader or a small communications business relying this? As noted, this is great for the consumer and shouldn't hurt the company's subscriber rates.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.