iPhone Network Congestion Opens Market for Time Warner Cable

iPhone users coping with jams on AT&T's network may get some relief from an unexpected quarter: cable companies.

Time Warner Cable, the biggest pay-television provider in New York City, is pitching phone companies including AT&T and Verizon Wireless on a service that uses its underground cables to carry mobile calls and Web downloads -- easing the congestion spurred by data-hungry users of smartphones like the iPhone. The service, known in the industry as wireless backhaul, has become Time Warner Cable's fastest-growing business after revenue tripled last year, said Craig Collins, senior vice president of business services. Across the cable industry, sales from wireless carriers may reach about $3.6 billion in 2012, according to researcher GeoResults. "Backhaul is a growth play that we are pursuing aggressively," Collins said. "These mobile players want to get the bandwidth they need at a cost-effective price and our structure allows them to get that pretty seamlessly."