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Clearwire: 555,000 Subscribers
173,000 of which are new, Mobile WiMax users
by Karl Bode 10:13AM Thursday Nov 12 2009
According to Clearwire's latest quarterly earnings, the company now serves about 555,000 subscribers. About 173,000 of those are using Clearwire's new Clear Mobile WiMax service. The remainder are still using the old Clearwire fixed service, for which our user reviews have always been rather lackluster. The company added 44,000 net subscriber additions in the quarter, a number Clearwire CEO Bill Morrow told earnings conference call attendees would have been higher -- were older fixed WiMax customers not leaving the fold. Clearwire stopped marketing the older fixed service.

"We continue to believe that we are in the right place at the right time," said CEO Bill Morrow. "We will gain our fair share of this brand-new market opportunity." Investors weren't quite as optimistic, shares shedding up to 15% of their value on Wednesday.

Clearwire posted a loss of $82.42 million, wider than the loss of $7.2 million one year earlier. Revenue increased 13 percent to $68.8 million. The company continues to insist that they'll be able to deliver the service to 120 million potential subscribers in the U.S. by the end of next year. As such, they just got another round of funding from partners totalling roughly 1.5 billion dollars.

While Morrow is optimistic (as all CEOs are), Clearwire's future remains murky. Early customers don't seem blown away by the service, and Clearwire's window to make a good impression ahead of LTE launches by AT&T and Verizon won't stay open forever.

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Harddrive
Proud American and Infidel since 1968.
Premium
join:2000-09-20
DFW
kudos:2

Does this company...

make any money after all the bills are paid?

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Does this company...

said by Harddrive:

make any money after all the bills are paid?
NO

Clearwire posted a loss of $82.42 million, wider than the loss of $7.2 million one year earlier.

Nine months ended September 30,2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (829,925,000)
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C0deZer0
Oc'D To Rhythm And Police
Premium
join:2001-10-03
Tempe, AZ

Re: Does this company...

Nevertheless, one cannot fault them for at least being able to provide a service and answer a need/want/desire that had previously been left untapped.

At least they (Clearwire) has been able to satisfy that role.
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Harddrive
Proud American and Infidel since 1968.
Premium
join:2000-09-20
DFW
kudos:2

Re: Does this company...

but a company should be making money while providing a service.

its one thing for a stripper to have to give up some of her tips to the strip club for the time slot she bought. but to lose it all or have to pay out of her own pocket when the shift is done is not good business for her.
yeah, you've satisfied your customers but you have nothing to show for it except a net loss of income.
how is that good business?
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Kringa

@comcast.net

Re: Does this company...

said by Harddrive:

but a company should be making money while providing a service.
It's quite common for start-up companies to post losses for a period until they reach a critical mass and gain economies of scale. In Clearwire's case, these losses are expected, since they are spending a lot of money to build a nationwide WiMax network.

Also, Clearwire has stated in past earnings calls that they aren't necessarily married to WiMax technology -- they are able to retrofit existing WiMax cells to LTE if desired.
Automate

join:2001-06-26
Atlanta, GA
Profits from big ideas usually take a while. Take for instance Amazon. They were founded in 1994. During the dot com bust there were analyst saying they would never make a profit. Then finally in the fourth quarter of 2001 they made their first 1¢ per share profit. Now they are one of the most valuable internet companies.

JasonOD

@comcast.net

Not sure how or what.......

but from various posts I've read there's at least anecdotal evidence that Clearwire has deployed something different here (in the US) than what they've got deployed in their successful overseas markets. If they don't get a handle on what users are complaining about here, and at least get on par with those outside markets (which seem pretty good), they'd better find another line of work.

Matt3
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: Not sure how or what.......

WiMAX is largely successful in overseas markets because the wireline networks are atrocious. So people are replacing ancient, slow, unreliable DSL with relatively new and speedier WiMAX.
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GhostDoggy

join:2005-05-11
Duluth, GA

Mis-targeted advertising

They have these very large banners hanging up in a shopping mall about 4-5 miles from my home. Yet, the mall and my home are not even in a service area. Nice banner, no service.
LineNoise

join:2006-06-25
Downers Grove, IL

Not for long

555,000 and dropping if they don't take these service issues seriously.

Anonbee

@e-karnet.net

Re: Not for long

There pre Wimax subscribers are bound to go down since pre Wimax was not even a technology worth deploying..Clearwire is planning to make a free upgrade to its pre Wimax subscribers...but only for places where they launch Clear.