Clearwire hints at missing debt payment to extend agreement with Sprint (USA)

On 11.21.11, In Mobile, By Editor

Clearwire Corporation, a U.S. based wireless internet service provider, has reportedly made a statement hinting at its inability to make a debt payment of US$ 237 million due on December 1 claiming that it would be a significant drain on the cash.

However, as per sources, industry analysts believe that this might just be a ploy by the company to receive financial support from wireless carrier Sprint Nextel Corp.

According to reports, Sprint being the largest shareholder in Clearwire, stands to lose the most if the carrier’s stock declines. Further, the two companies are co-dependent on each other; while Sprint relies on Clearwire to provide wireless service to its customers, Clearwire receives most of its revenue from Sprint.

Reports reveal that Clearwire claimed it needs around $1 billion to upgrade its network from the WiMax wireless technology to long-term evolution (LTE) technology. Further, sources say that Clearwire had $698 million of cash and short-term investments at the end of September with over $4 billion in debt.

 

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Clearwire’s share price rises in anticipation of funds from Sprint (USA)

On 11.07.11, In Mobile, By Editor

Washington based Clearwire corp.’s shares rose by 8 percent to close at $1.89 after Sprint Nextel Corp. announced that it may help to financially support the carrier. According to reports, the funds received from Sprint would enable Clearwire to fund its operations and help pay for a planned network upgrade.

As per sources, Sprint is planning a debt sale and has said that the proceeds from the sale of the seven and ten year notes will be used for general corporate purposes, which may include, among other things, redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire.

Reports suggest that Erik Prusch, CEO, Clearwire has said that they have one overarching goal which is to get the company to profitability. He added that they want to have a long-term WiMax commitment, a long-term LTE commitment, and funding.

 

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Sprint Nextel may extend network-sharing contract with Clearwire (USA)

On 10.31.11, In Mobile Operators, By Editor

Sprint Nextel Corp. and Clearwire Corp. reportedly plan to extend their network-sharing agreement for the next three to five years. According to reports, the deal would enable Sprint to continue using Clearwire’s network to provide its customers services even after the existing contract expires in 2012.

Industry sources claim that a new agreement like this could help bring some stability for Clearwire, which has been suffering financial losses. The company reportedly needs as much as $1 billion to shift its network to Long-Term Evolution (LTE) wireless technology and finance its operations. However, it is suspected that Sprint may reduce the price that was earlier paid to Clearwire for handling the traffic.

As per reports, analysts believe that Sprint may drop its price from the current $10 per gigabyte of data to somewhere around $6 per gigabyte of data. Further, sources claim that an extended deal with Sprint would be highly beneficial for Clearwire as it would greatly enhance the utilization of its wireless network and would provide it enhanced visibility for revenue generating opportunities.

 

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Best Buy, Clearwire launch 4G mobile broadband service (US)

On 03.29.11, In Mobile, By Editor

Best Buy Connect has launched 4G mobile broadband connectivity service on an expanded selection of computing devices sold at Best Buy stores nationally.

The 4G service provides consumers with high-speed internet access on-the-go, with service activation, billing, hardware and connection support from Best Buy. The 4G service offering is available through a wholesale partnership with Clearwire.

Users can purchase Best Buy Connect 4G as mobile broadband option on 23 computing models from Asus, Dell, HP, Samsung, Sony and Toshiba at most Best Buy stores across the US. Initially, Best Buy Connect will offer unlimited 4G service for US$45 per month with a month-to-month or two-year contract.

With the purchase of a two-year contract, customers can waive the US$35 activation fee and receive up to an additional US$150 off select hardware devices.

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Clearwire cancels plans to sell own-branded WiMAX phones (US)

On 03.26.11, In Mobile, By Editor

Clearwire has cancelled its plans to sell its own branded mobile phones and will rely instead on handsets supplied by its majority shareholder, Sprint Nextel.

The company originally announced its plans to sell its own branded phones last year.

As per reports, Sprint currently resells the Clearwire WiMAX service and offers three handsets and has plans for several new handsets in the next few months.

As per commentators, the decision by Clearwire to start selling own-branded phones is part of the reason why Sony Ericsson would launch a trademark lawsuit claiming that there will be confusion between their respective logos if  the Clearwire logo appears on handsets as well.

 

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Clearwire CEO Bill Morrow resigns (USA)

On 03.14.11, In Mobile, By Editor

USA based WiMAX network, Clearwire’s CEO Bill Morrow has resigned from the post with immediate effect citing personal reasons.

This is not the first time he has left a company for “personal reasons”. He was the famed “turnaround guru” at Vodafone Japan until he suddenly resigned – for personal reasons – in July 2006, only to then take a job at an energy firm just a few months later.

Clearwire’s Chairman, John Stanton has been named the firm’s interim CEO while a permanent successor can be found.

In addition, Erik Prusch, Clearwire’s CFO, has been promoted to the newly created position of Chief Operating Officer (COO), while Hope Cochran, Clearwire’s Senior Vice President and treasurer will take over as CFO. Cochran will be responsible for all of the company’s financial and investor related functions, including overseeing Clearwire’s ongoing fundraising efforts.

The company also announced that Mike Sievert, Chief Commercial Officer, and Kevin Hart, CIO, are both leaving the company to pursue other opportunities.

According to the company, the changes in executive leadership are not expected to impact the company’s progress on an agreement with Sprint to resolve wholesale pricing disputes. Clearwire believes that an agreement with Sprint is imminent.

 

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Clearwire sued for throttling customers (USA)

On 03.14.11, In Mobile, By Editor

Clearwire has been sued by customers alleging that their Internet speeds were purposely slowed down.

Claiming that the company is operating a “Ponzi Scheme”, the lawsuit alleges that the company is signing up more customers than its network can cope with, and then earning revenues by charging substantial termination fees to break contracts when customers cannot get the service they expected.

Clearwire’s practice is akin to a bandwidth Ponzi scheme in the sense that Clearwire advertises and sells a service, knowing in advance that there is no way it can provide such service on an ongoing basis — i.e., Clearwire sells subscriptions prior to build-out of sufficient infrastructure to support the “High Speed Internet” it advertises. Someday, if Clearwire sells enough subscriptions, it may have sufficient funds to go back and create the infrastructure to support its Internet service and make good on its promises.

While Clearwire has admitted to throttling the wireless broadband speeds, it states that these are temporary measures based on network performance.

Fifteen people are named in the lawsuit which seeks to be declared a class-action so that they can act on behalf of all of Clearwire’s customers.

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DT will always explore options,says T-Mobile CEO (US)

On 03.14.11, In Mobile, By Editor

T-Mobile USA’s CEO Philip Humm wrote to his staff recently about not ruling out the chances for a sale in the future.

He states in his letter that the parent company Deutsche Telekom (DT) will always explore options for maximizing the value of its portfolio and profits, without elaborating on what talks, if any are ongoing.

He confirmed in the letter that he has held talks with the CEO of Deutsche Telekom, Rene Obermann regarding the sale of towers, strategic partnerships and other financial options though, which largely support much of the recent rumors about a sale of the tower assets to raise funds. The company is thought to be in talks with WiMAX network, Clearwire over its radio spectrum.

 

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Clearwire wins the first round against Sony Ericsson

On 02.18.11, In Mobile, By Editor

­Last month Sony Ericsson sued USA based WiMAX network, Clearwire claiming a copyright breach over the two company’s logos. A hearing requested by Sony Ericsson for a preliminary injunction has, however, gone against the company, with the judge saying that there is insufficient evidence of likelihood of confusion and no irreparable harm to the company.

Although not a final verdict in the case, it does cast doubt on whether Sony Ericsson would be able to argue on the matter any further.

In a statement, Clearwire stated that it is pleased with the federal court’s decision to deny Sony Ericsson’s motion for a preliminary injunction against the use of the CLEAR marks.The company added that the judge’s findings of insufficient evidence  further support its contention that the suit is without merit.

The company concluded the statement claiming that they expect that the final disposition of the case will be in their favor and that it will demonstrate that the CLEAR branding is clearly differentiated from the Sony Ericsson brand.

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AT&T, Verizon 4G Wireless technology to be dominant by 2012

On 02.09.11, In Mobile, By Editor

A new research reports has revealed that LTE, the high-speed mobile Internet standard used by AT&T Inc. and Verizon Wireless in the U.S., will become the dominant 4G network technology worldwide by 2012.

According to the report, next year, there will be more than twice as many customers for LTE as for WiMax, an alternative 4G technology used by Sprint Nextel Corp. In 2014, there will be 303.1 million LTE users worldwide, almost ten times as many customers as WiMax.

Report revealed that with WiMax enjoys a two to three-year head start in next generation network deployments. It presently enjoys a major advantage in the market share. With LTE supported by most of the leading wireless operators worldwide, it will rise to surpass WiMax.

A wider adoption of a wireless technology may help reduce prices for network equipment and phones  and prompt handset makers to produce more devices for that standard.

According to Sprint, it will spend as much as $5 billion to upgrade its network in the next three to five years. The modernization plan will make it possible for Sprint to add LTE service.

4G networks provide customers with data speeds several times faster than older technology. Carriers are building out speedier infrastructure as they encourage more customers to buy data plans, which give users Web access and the ability to download games and music.

WiMax will maintain its lead this year with 14.9 million subscribers worldwide to LTE’s 10.4 million. Verizon began offering LTE to customers in some markets last year. Clearwire and Sprint have been offering WiMax service for more than two years.

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