dslreports logo
site
spacer

spacer
 
   
spc
story category
Cable Industry, Sprint In Talks About Clearwire Buy
Alongside Clearwire's Major Cable Industry Backers
by Karl Bode 08:51AM Friday Aug 19 2011 Tipped by tomei See Profile
From the "well that's not terribly surprising department," Bloomberg reports that Sprint and several major cable companies are in talks to acquire struggling Clearwire. Talks so far have involved all of Clearwire's cable investment partners including Cablevision, Cox , Comcast, Time Warner Cable and Bright House -- and the deal could involve simply providing additional funding or a total buyout, according to Bloomberg's sources. Investors are growing increasingly nervous that Clearwire not only won't be able to raise enough cash to both function and continue their network build out, but that they won't be able to raise enough cash to make their promised switch to LTE technology -- a switch Sprint is also expected to announce later this year. Sprint has been preparing for a Clearwire fiscal implosion for some time, in June cutting its voting stake to 49.8 percent from 53.7 percent to limit financial liability.

view:
topics flat nest 
dmelling

join:2009-02-26
New Paris, OH

Saw this coming....

The other day someone on the inside of Clearwire bought a ton of stock. I am sure he knew something was coming. I hope it pushes the stocks higher...I am sitting on a 60% loss at this time. Their value is in the spectrum they are holding......
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Saw this coming....

said by dmelling:

The other day someone on the inside of Clearwire bought a ton of stock. I am sure he knew something was coming. I hope it pushes the stocks higher...I am sitting on a 60% loss at this time. Their value is in the spectrum they are holding......

Isn't that illegal...?
ov_black

join:2011-05-02
Cypress, TX

Re: Saw this coming....

It's not about what you know, it's about what you can prove...

But yes, insider trading is illegal.
dmelling

join:2009-02-26
New Paris, OH
I would think so but there is no proof........I am not going to complain
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
said by sonicmerlin:

said by dmelling:

The other day someone on the inside of Clearwire bought a ton of stock. I am sure he knew something was coming. I hope it pushes the stocks higher...I am sitting on a 60% loss at this time. Their value is in the spectrum they are holding......

Isn't that illegal...?

Only if it was based on inside information.

This past week, a lot of investors are simply taking advantage of oversold conditions while everyone else is panicking.

Investing in Clearwire is ... [ahem] clearly high risk. Said insiders could just as well lose their shirts. While everyone on DSLR is shouting from the rooftops about how valuable the spectrum is (and it is), everyone conveniently ignores the tens of billions that firms must put up to deploy that spectrum, without any guarantee of profitability.

battleop

join:2005-09-28
00000

What's next?

Spring Buys Clearwire then Comcast buys Sprint?

Karl Bode
News Guy
join:2000-03-02
kudos:39

Re: What's next?

Something like that. Throw LightSquared in there somewhere.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: What's next?

LightSquared needs to go public first so that private equity can get their money back. The stock will implode and then Sprint will pick up the pieces (and large amount of debt). Sprint will then be acquired by Comcast to legitimize its place as one of the three major telecom powerhouses in the US...all in the next five years after the AT&T/Tmobile deal is done.
Sammer

join:2005-12-22
Canonsburg, PA
That's an interesting scenario. Here's another, the cable companies buy Clearwire (majority share Comcast) while at the same time Comcast acquires control of Sprint. All of Clearwire / Sprint spectrum will then be controlled by the cable industry making them less dependent on either AT&T or Verizon Wireless.

battleop

join:2005-09-28
00000

Re: What's next?

Wireless is the only arena where Comcast (and other cablecos) are not competeing with AT&T and Verizon. Eventually Cable is going to want their cut just like AT&T and Verizon wanted their cut of video.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: What's next?

Comcast and the others did compete against T and VZ with wireless. Although they choose to use resold Sprint services and thus fast higher packages due to sprint having to get their cut. Nobody knew anything about the services; you couldn't move a current Sprint phone to Privit (the cable side) and if you could; you had to jump through hoops to find someone that knew what they were doing.

Sprint is a MAJOR provider of the Digital Phone side for the MSOs. They provide a great deal of the DIDs and the backend without much effort from the MSO. TWC's major partner is Sprint for this.

voipguy

join:2006-05-31
Forest Hills, NY

Cablevision?

Cablevision was never a Clearwire investment partner, as far as I have heard. The referenced article only says Sprint is talking to Cablevision.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Cablevision?

CV claims they wanted to work with TMO before the T and TMO announcement. But that was due to TMO using WiFi calling. which would greatly help increase coverage for TMO customers and give CV the option to sell cell phone services and announce they could do street level coverage where TMO couldn't- especially in CV service areas.

Turbo10019

@rr.com

Clearwire deserves more credit

I have an internal Clear Wi-max card in my laptop. I travel the US extensively for work and in most of the large cities without a stupid usb stick, an express card, or an ethernet cable I can open my laptop and be connected at DSL like speeds within seconds. I had both Sprint and Verizon Evdo cards before that and using them to browse the web was like trying to pour cold ketchup out of a jar.

If Clear had never taken the plunge to build their network Verizon and AT&T would have been content to sit back and milk their existing slow wireless networks for years to come. Granted Verizon LTE is awesomely fast but it wouldn't exist without Clear jumping out there and getting their build done. And how useful is a fast connection with a data cap? Stream two netflix movies and your done for the month.

We need Clear to survive and grow to keep AT&T and Verizon with their expensive data plans from milking American consumers dry. The best thing that we could see would be a 4G capable i-Phone for the Sprint / Clear network at a flat fee of $60 a month with no data cap! Make it happen Apple!
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Clearwire deserves more credit

the rumor was the next iPhone (5) is suppose to be multi-band.- GSM, CDMA and others. But will it include WiMax it should only due to more $$$ for Apple. Although if HP was smart they'd do it with WebOS.
rradina

join:2000-08-08
Chesterfield, MO
I have the iPhone tethering plan with ATT and it works well. Wherever I get 3G (always in metro areas), I get better than DSL speeds (assuming DSL is defined as 1.5Mbps down).

About two years ago when Clear first stated they had coverage in my area, the wife of a guy at work was selling Clear plans. She let him pass around a demo modem to a bunch of coworkers. I took it home for the weekend and I couldn't get a signal unless I stuck it in a second-floor window on the east side. There I had two bars, 1000ms pings and about double dial-up speeds. It worked great at the office although the pings (~100ms) were nothing to crow about. Unfortunately, nearly half the folks who tried it at home were in some sort of "dead spot" in terms of coverage and they either couldn't get it to work at all or had a similar double-dialup-speed experience.

Since then Clear has added towers. However, I live on a hill and Clear maps, show I'm about a mile from two towers. Yet I don't qualify for "inside" coverage. They will only pen a mobile plan.

I'm rather disappointed with their coverage. They offer decent "mobile" coverage of a metro area but they are very picky about selling the fixed plans. Neighbors two blocks away from me are covered but I must have too many trees. This reminds me of how fragile satellite is and just put a bad taste in my mouth.

Perhaps if someone buys them and invests to eliminate dead spots, they'll have better success. In my opinion, I have plenty to complain about ATTs coverage but even they seem to be able to cover metro areas better than Clear.

And if you leave a Metro area -- forget clear whereas ATT has made some progress on 3G. Nothing like Verizon but a lot better than a couple years ago.

Chapu

@rr.com
I totally agree with you. I am so mad right now that no one is giving WiMAX a real shot. unlimited Data, it can indeed cover larger areas, enough people invest, and make them take top notch Fiber network to the tower, and only the best microwave @ best possible reception and data offload, and please do remember easier and faster deployment, rocks to rural areas where only dial up exist, or ultra slow and unmaintained DSL. i love it had i the money, interested investers i would build as many towers as possible with best effort in mind.
WiMAX High Speed
WiMAX Voice
WiMAX Video? nice idea!!!!!

anonymiss

@comcast.net

Another..

500 or 600 point loss week and there's no way Comcast doesn't buy Sprint at it's huge discounted price.

Comcast probably had no plans on jumping into wireless this soon, if ever, but you can't pass up buying Sprint for pennies on the dollar.

The only problem might be that Verizon then might try a counter takeover of Sprint, and we'd be down to 2 wireless carriers on the US.

Which would be bad.
chgo_man99

join:2010-01-01
San Jose, CA

Re: Another..

I don't see how Comcast getting into true wireless business would create better competition against VZ or AT if they acquired Clearwire.

In Canada, Rogers has wireless business and cable business and mainly competes with telco Bell and other telcos.

Yet, they have one of the lowest caps on HSI with overages and their wireless data plans are even more pricey than in the U.S.

Here you can get for $50 ($40 if you have corporate/university discount) 5GB plan while over there for the same price they only offer 2GB. And they don't even offer $10 GB plan.