Cable's bet on WiMax venture seen risky

By Yinka Adegoke and Sinead Carew - Analysis

NEW YORK (Reuters) - Top U.S. cable companies face big risks if they invest in a WiMax wireless venture as they will be putting money during tough economic times in an unproven technology with a long list of partners to satisfy.

Comcast Corp (CMCSA.O: Quote, Profile, Research) and Time Warner Cable Inc (TWC.N: Quote, Profile, Research) are in talks to invest $1.5 billion in the venture with Sprint Nextel Corp (S.N: Quote, Profile, Research) and Clearwire Corp (CLWR.O: Quote, Profile, Research) that could also involve Intel Corp (INTC.O: Quote, Profile, Research) and Google Inc (GOOG.O: Quote, Profile, Research) among others, sources familiar with the matter said on Wednesday.

Their goal is simple: cable wants to add wireless to their triple-play package of video, home phone and Internet services for consumers, seeking to better compete against telecom rivals like AT&T Inc (T.N: Quote, Profile, Research) and Verizon Communications Inc (VZ.N: Quote, Profile, Research), which also offer triple-play services and have wireless units.

But analysts, who have already watched an earlier cable joint venture with Sprint flounder, question the efficiency of another project with multiple partners with differing agendas.

The venture could also likely include smaller cable provider Bright House Networks.

"Investors in Comcast and Time Warner Cable have become increasingly adamant about the immediate return of free cash flow and the attendant minimization of capital spending," Craig Moffett, analyst at Bernstein Research, said in a client note.

"And this investment on a technology surrounded by very significant questions marks is not insignificant," he said, referring to worries that WiMax is an unproven technology.

WiMax promises a five-fold boost in mobile data speeds and wireless links to a range of consumer electronics, making it possible to instantly share digital photographs on the go, or to swap or download songs with a music player on a whim.