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Cablevision Plans Wireless Broadband Network in New York

May 12, 2008

Cablevision Systems Corp. recently announced plans to offer high-speed wireless Internet service across its New York coverage area including Long Island. Cablevision CEO Tom Rutledge said the new offering was planned in order to meet the demands of the company’s existing customers who currently subscribe to Cablevision’s high-speed Internet service.

New Service Will Offer Mobile Online Access

Rutledge says the new wireless broadband service, which will be developed over the next two years, will provide Cablevision's existing Internet customers online access through mobile devices such as Apple's iPhone, BlackBerry smartphones, and laptop computers. The company estimates that it will cost $100 per customer to create the service which will be built on Cablevision’s existing infrastructure. Cablevision currently has approximately 3.1 million cable customers in the New York region.

WiFi Technology Will Drive Cablevision Network

Cablevision's network design will use the type of WiFi technology which is currently used for wireless routers in homes. Rutledge said the service would be free to existing customers and be available on a fee basis to non-subscribers. He also pointed out that the Cablevision will eventually be capable of offering phone service through the wireless broadband network.

Other Cablevision Expansions

Cablevision also recently announced its purchase of Robert Redford's Sundance Channel for a price of $496 million. The network will continue to offer its own programming channels including AMC, IFC, and WE TV.

Cablevision is also bidding $650 million to acquire Newsday, a major newspaper based on Long Island.

Following the announcement, Cablevision shares rose 36 cents or 1.5 percent to $24.11, remaining close to the low end of their 52-week range of $20.68 to $39.75.