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Clearwire Adds 1.23 Million New Subscribers
Though company cash concerns are beginning to escalate
by Karl Bode Friday 05-Nov-2010 tags: coverage · business · consumers · Clearwire · Clearwire Wireless · Clearwire
Clearwire's third quarter earnings were very positive in the sense that the company added a whopping 1.23 million new subscribers during the quarter. On the other hand, cash continues to be a concern as the company continues deployment and preps Mobile WiMax launches in Los Angeles and San Francisco starting in December. The company posted operating losses of about $540 million during the third quarter, and Clearwire CEO Bill Morrow means that this is going to result in some operational streamlining:

While we continue to exceed our subscriber and operational goals, we have not yet secured future funding and prudence dictates that we take appropriate cash conservation steps to reduce costs. We continue to pursue all options for future funding including debt, equity or a potential sale of excess spectrum or other assets, and we remain cautiously optimistic that we will resolve our short-term funding needs in the near future. We continue to believe that our unmatched spectrum portfolio and our all-IP based network will keep us extremely well positioned in the dynamic and burgeoning market for mobile data."

Clearwire says they're going to cut back sales and marketing spending, delay commercial Mobile WiMax launches in Denver and Miami, and reduce their workforce by about 15%. Clearwire insists these efforts should reduce costs by $100 million to $200 million this year and the same amount during the first half of 2011. Despite some very deep pocketed sugar daddies (like Comcast and Intel), questions have long lingered about Clearwire's financial ability to get their network completed. Stacey Higginbotham at GigaOM notes that Clearwire is $2 billion in debt, with several checks coming due soon.

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en102
Canadian, eh?

join:2001-01-26
Valencia, CA

new add numbers are looking good

1.23M new subs isn't bad. I'm curious as to how well it will do in the L.A. / S.F. market
Since Clear doesn't go north/west of the San Fernando Valley, I wouldn't be using it.
L.A. basin looks like it will be covered down to Orange County.
Glint

join:2005-04-06
Arroyo Grande, CA

Re: new add numbers are looking good

I just checked the Clearwire coverage maps. It does not show those locations as “Future Coverage”. Where are you getting this information?

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: new add numbers are looking good

It 'was' there on yesterdays announcement... but is gone today.
synapse

join:2006-01-30
Seattle, WA

Wholesale Subs

I wonder if the 1.23 M of total new subs counts the number that the investors add. Like, if Comcast adds an Xfinity Internet to go, does Clear also count that as a new subscriber too?

Curious...
xenophon

join:2007-09-17

Re: Wholesale Subs

It includes EVO/Epic 4G phones, so doesn't seem as high as you'd expect. I think they are only getting $5/month from the 4G phones.

The rollout is expensive though so of course there would be a loss given the rollout expenses are higher than revenue from current user base - that is the case with any new company that hasn't completed its rollout.

BTW, they say they now cover 100m pops when including markets not announced yet. They said they still expect to hit 120m by end of year.

Clear is doing OK considering but they have to find more investors. Selling spectrum to fund the rollout is just a bad move.

Jon Geb
Wal-Mart Sucks

join:2001-01-09
Howell, MI

Re: Wholesale Subs

Hey Clearwire, get the ball rolling in Metro Detroit. 3.9 million people in a tri-county area have NO 4G.

swhitney2003
Premium
join:2003-06-13
NH

Re: Wholesale Subs

Technically no body has 4G, anywhere. Except maybe in labs.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

not ready for prime time..

wireless broadband that consumers pay a monthly subscription cost for vs free wifi in a down economy can lead to problems if wireless broadband is your only product.

packages ranging from $50-$70 1 megabit upload. •2-year contract commitment

dead in the water, good luck getting the next million customers and financing to expand. if this were 1996 and bell atlantic were still scraping enough cash to buy the primitive remote terminals (compared to today's vrads) this might make sense. most people even considering this would rather get raped by the telcos on a cell phone post paid account that allows limited tethering to another device.

scott2020

join:2008-07-20
MO

Re: not ready for prime time..

If they would cover some rural areas, it would beat the heck out of my DSL .75 meg down/.25 meg up for $50 a month.

Oh yeah, don't tell me to move.

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
Reviews:
·DSL EXTREME

Great...Until Throttling

That's a lot of new subscribers. I wonder if they told all of them about the ~5 GB shaping cap they put on new accounts, or did they tell them "unlimited bandwidth" like the rest?

Honestly, if I can't stream 2 Netflix movies a month w/o endangering myself of going over your throttling caps, then it's not a real primetime residential ISP.

Sabre
Di relung hatiku bernyanyi bidadari

join:2005-05-17

Re: Great...Until Throttling

Like most other things, it all depends on the individual experience.

I'm in an area where I'm pretty confident I'm one of the only people on my tower. Whether that makes a difference I don't know (or rather I'm sure it makes a difference but I don't know how much), but my wife streams more Netflix in a month than I think I could watch in a year, and we've had virtually no throttling issues whatsoever. We've done heavy Netflix streaming while I've been playing WoW at the same time, and responsiveness is good.

I'm sorry yours didn't work out.
--
With all its sham, drudgery, and broken dreams, it is still a beautiful world.

Save American Soccer - Stop the MLS!

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3

Re: Great...Until Throttling

Well then, guess your experience will work well provided you're the only one on the tower. Maybe if Clearwire were to pick up subscribers in your area, you'd be experiencing the same throttling many other users are complaining about on these forums.

Biggie

@rogers.com
I hear you I just sent their modem and stuff back I didn't even have it for 1 week and BAMB i got throttled..so as far as I'm concerned its the SOS when it comes to clear wire..its just same ol' clear wire with a different name on the so called unlimited speed..good luck clear wire with all the promises that you cant keep. I couldn't even keep Netflix going without buffering every 3 seconds...typical of them over selling their network to make money,and make their share holders happy at the expense of the little guys that pay their bills....well not anymore from me.Clear wire can take their so called unlimited, and shove it!!
vlad1000

join:2005-05-19
Brooklyn, NY

i really want affordeable mobile internet but not CLEAR!

i really like how they put in their flyer "get ready to enjoy UNLIMITED USE that really means unlimited*
and then explanation of throttling in the end of the flyer.....wow
what a cheesy sales pitch...i bet that cheese is moldy too
bastards...
i hope verizon offers something affordeable...
even though verizon will capp your monthly allowance...at LEAST they're honest about it...unlike unCLEAR....so far i did not sign up with clear and most likely won't...UNTIL they find a way to STOP throttling customers....i hope thats CLEAR to CLEAR:)
chgo_man99

join:2010-01-01
Schaumburg, IL
Reviews:
·AT&T U-Verse
·Mediacom
·T-Mobile US
·Clearwire
·AT&T Wireless Br..
·Comcast
·AT&T DSL Service
·RCN CABLE

Re: i really want affordeable mobile internet but not CLEAR!

in ... they would be:

in retail banking: Citi Bank

in investment: Golden Sachs

in telecommunications (landline): Frontier

in mortgage: Fannie Mae,

in CATV industry: RCN

in discount stores: Walmart (think about employees)

in retail gaming: Microsoft (Xbox)

in web portal business : AOL

in video rental: Holywood Video (bankrupt, out of business)

in your real life:
- obnoxious neighbor
DarnellP

join:2004-10-12
Las Vegas, NV
said by vlad1000:

i hope verizon offers something affordeable...
LMFAO!!! Verizon and affordable in the same sentence, good one...

BHNtechXpert
BHN Staff
Premium,VIP
join:2006-02-16
Saint Petersburg, FL
kudos:32
Reviews:
·Clearwire Wireless

1 edit

They could save money by firing their retail management team

Case in point...

This week Clear opened their Tampa office but not in the usual place you might think. Instead they placed their store in the International Mall, 2nd Floor, tucked away in a small small space right next to the food court. They are paying 5x+ what they should be paying for comparable space in a centrally located part of Tampa (which the International Mall is not). It's a pain to get there and because of it's location they don't even get the best signal to demonstrate their service instore. Nothing makes sense about the location of this store...NOTHING!

I'm just now completing a review of my Tampa Clear experience and will have it posted on my website in less than 72 hours for those interested. Nothing would make me happier than to see them succeed for mobile wireless but whoever the "braniac" was that made this decision needs to be shown the door. If you are cash strapped you don't make lame decisions like the retail marketing team did in the placement of the Tampa store. Simply stuuupid!

DoRight

join:2007-07-20
East Petersburg, PA

Re: They could save money by firing their retail management team

Clearwire approves the spaces but is managed thru a 3rd party company in Tampa.

BHNtechXpert
BHN Staff
Premium,VIP
join:2006-02-16
Saint Petersburg, FL
kudos:32
Reviews:
·Clearwire Wireless

Re: They could save money by firing their retail management team

And that's an excuse for incompetence? They should have denied the space then. Like I said...look for my review. Without letting the cat out of the bag...it raises more questions than just "what were they thinking when they approved that retail location."
jswinner

join:2005-12-23
Portland, OR

But still hemorraging cash

Should be the real tag line

»www.bloomberg.com/news/2010-11-0···ess.html
Sarusan

join:2010-08-30
Seattle, WA
Reviews:
·Comcast
·Clearwire Wireless

But what about the churn?

Funny how they like to spin how many new customers they signed up but avoid talking about their churn (customers who leave their service).

I for one become fed up with the poor service and reliability issues as well as the cost of the service which was almost as much as cable internet but with far lower speeds (and greater latency & jitter).

As for those sugar daddies ... well most are either starting to hurt for cash or have focused their investments towards other things such as purchasing a major television network (NBC), improving their cellular network (Sprint) or is cutting expenses due to a downturn in sales as well as paying for regulatory fines (Intel).

I say that this is one sugar baby that needs to learn to earn money on its own merits and hard work instead of sponging off of others.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable

Crash and Burn: Churn is coming!

Had the chance to test Clear's CDPD, or was it GPRS service, last week, here in Los Angeles. They're asking $55 a month for the USB modem, which barely connects, and plods along at sub-EDGE speeds, all the while an LED glows to assure you that you have a "4G" connection.
ballstonian

join:2010-11-28
Arlington, VA

Record Censorship on CLEAR Customer Forums

The old adage is, "where there's smoke, there's fire".

Well, there's a whole lot of smoke coming from the CLEAR customer forums---and it ties into everything that's been said in this thread. CLEAR is bleeding money and needs to expand customer base and capture market share before LTE. But their lack of cash means they can't afford the very bandwidth they are using to lure in new customers. So they throttle and fail to fix towers and move assets, etc.

This leads to unhappy customers. And that leads to more and more aggressive posts on the company's forums. And, then, finally, that leads to censorship.

As of 11/20, CLEAR forum moderators had already nearly doubled the record number of deletions, archivings, and rewordings seen in October. What are they hiding? What are they worried about?

See »groups.google.com/group/clear-wi···censored for more, including a CSV file with the raw data.

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