Comcast has become the first U.S. cable operator to take on telecommunications rivals in the cell phone market, having introduced the service in two cities, says Reuters.

Comcast, the largest U.S. cable television operator, launched the new service in Boston and Portland, Oregon, earlier this month after a year-long trial.

Time Warner’s cable unit and Cox Communications expect to introduce their own wireless services early in 2007.

The three cable companies plan to use the wireless network of No. 3 U.S. mobile operator Sprint Nextel as part of an agreement reached last year, explains Reuters.

Although the customer will receive only one bill for all services, Sprint will ultimately receive the wireless fees. The main benefit for Comcast is to attract and retain subscribers.

Comcast, Time Warner, Cox and Advance/Newhouse Communications announced their $200 million 20-year joint partnership with Sprint last year.

Time Warner Cable, the No. 2 U.S. cable operator, said it would fully launch wireless services in Raleigh, North Carolina, and Austin, Texas, in the next few months and to all of its markets in 2007.

The company is testing wireless packages starting at $29.99 a month as an add-on service. Comcast’s start at $33. Sprint’s PCS cellular service will be used. The joint Cable/Sprint bid on the AWS band will take years to build out.

Posted by Sam Churchill on Tuesday, November 28th, 2006 at 9:16 am.