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News tagged: Clearwire Wireless


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Clearwire isn't too long for this world, after Sprint finalized their acquisition of the company last July. The company began terminating Clearwire employees last month, Clearwire's website directs new users to Sprint services, and Sprint intends to use Clearwire's 2.5 GHz spectrum to improve Sprint LTE coverage.

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Meanwhile, lingering Clearwire WiMax users are being treated to a $5 rate hike for all plans, according to several posts in our Clearwire forum. many Customers who were paying $35 or $50 for Clearwire unlimited plans now are being asked to pay $40 and $55 for the same service.

Clearly Sprint is trying to slowly drive customers away from the brand and toward their own services, even though Clearwire has stated they'll be keeping the current service operational through the end of 2015 (you might want to take that promise with a grain or two of salt, however).

If you're a Clearwire customer whose looking to switch, there's an ongoing thread in our forums discussing your options.

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Earlier this year Netflix began ranking the quality of video streaming performance for each of the nation's largest ISPs. HD streams have variable bitrate but can potentially top out at around 4800 kilobits per second, and the data, gleaned from 36 million Netflix members who view over 1 billion hours of TV shows, provides a bird's eye view by ISP of sustained throughput available from a given ISP over time.

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The Sprint, Clearwire, Dish and SoftBank soap opera lives on. On the heels of news that Dish would likely be abandoning its attempted acquisition of Sprint, Sprint may have put a dent in Dish's plans to acquire Clearwire as well.

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The FCC this week stated that Softbank's $20 billion acquisition of Sprint is on track for a late May ruling, with all signs pointing to approval. The FCC's 180 day "shot clock" for approval ends on May 29.

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Making Dish network's already unlikely Clearwire takeover bid even less likely, Clearwire this week announced that they will be taking more Sprint money after all. According to a company press release, Clearwire will be getting an $80 million payment from Sprint on top of the $2.97-per-share existing offer by Sprint to acquire the rest of Clearwire. Dish had previously stated they'd withdraw their own $3.30-per-share counter-offer if Clearwire accepted that funding. Despite the fact the Sprint financing means the Dish deal is likely dead, Clearwire continues to insist they're engaged in ongoing negotiations with Dish.

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Clearwire's fourth quarter earnings indicate company revenue in the fourth quarter fell 14 percent to $311 million, though its net loss declined to $187.2 million from $236.8 million one year ago. Customers continue to defect -- Clearwire ending the year with 9.6 million total subscribers, down 8% from the 10.4 million subscribers they laid claim to at the end of 2011. Executives essentially just pantomimed their way through the earnings call, refusing to answer questions on why previous projections had been so wrong, or any questions on the Sprint deal.

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Broadband Reports has confirmed that Clearwire is testing new tiered pricing plans in several new markets. Clearwire's new trial pricing plans offer users 2 GB of usage for $20, 40 GB of usage for $40, or an unlimited offering for $60.

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Reports surfaced earlier this week that Sprint was pushing to acquire the remainder of Clearwire, and now Bloomberg reports the current acquisition offer is around $2.1 billion for the remaining shares. Sprint's acquisition by Japanese carrier SoftBank is expected to fill the company's coffers, allowing them to finally acquire Clearwire and the company's massive spectrum holdings -- something most saw as the inevitable outcome. Minority Clearwire shareholders Mount Kellet Capital Management LP and Crest Financial Limited have sued to stop the deal, urging Clearwire to look for better offers.

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Clearwire is engaged in damage control over our recent report that the company is inconsistently kicking people off of their network for excessive use -- despite advertising an unlimited service and throttling users to 250 kbps. Numerous users have complained that they were recently told they could no longer be Clearwire customers.

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Several users say that Clearwire is terminating their accounts for excessive usage, despite the fact they've used only around 5 GB, and pay for unlimited accounts. Several different Twitter users say they were surprised to receive the notices this week, informing them that they would no longer be wanted as customers.

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Anonymous sources tell Bloomberg News that Sprint has no plans (yet) to fully acquire Clearwire after Sprint itself was recently acquired by Japanese carrier SoftBank. Sprint currently owns a 49% stake in Clearwire and faces no pressure for full ownership given they've already paid Clearwire $900 million to lease needed spectrum.

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