U.S. cable operators are starting to inch their way into the wireless services arena, but adding wireless to their service bundles isn't top of their "to do" lists just yet, according to the latest report from Light Reading's Cable Industry Insider. (See Cable Goes Wireless.)

    "Is till think [wireless] is not number one or two on the agenda. A good question is if it's even number three," says Heavy Reading senior analyst Alan Breznick, the author of Cable's Wireless Strategy: More Than Just Talk.

    He says cable operators are spending more time and resources on residential VOIP and advanced video services, such as high-definition television (HDTV), but should be more aggressive about their push into wireless.

    "It hink they should place more emphasis on it," Breznick explains. "I think it's something they're going to need to do in order to compete effectively against phone companies that already have big wireless pieces."

    But as Breznick shows, the MSOs aren't standing still when it comes to wireless market activity. His report provides updates on the "Pivot" joint venture between Sprint Nextel Corp. (NYSE: S - message board), Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC - message board), Bright House Networks , and Cox Communications Inc. , which is expected to offer services in a total of 40 markets by the end of 2007.

    The report also explores: how some MSOs such as Rogers Communications Inc. (NYSE: RG - message board; Toronto: RCI) are going it alone; the potential implications of the 2006 Advance Wireless Services (AWS) spectrum auctions; and the upcoming auctions of valuable 700MHz spectrum.

    The MSOs, though, will find it hard to match the marketing campaigns of the major telcos, particularly those that carry a significant "cool factor," such as the iPhone launch by AT&T Inc. (NYSE: T - message board) and its partner Apple Inc. (Nasdaq: AAPL - message board). (See The iPhone Arrives.)