Clearwire Considering $2 Billion Spectrum Sale Something Sprint's CEO insisted wouldn't happen The other day, Clearwire announced that the company had taken on additional debt in order to continue funding network expansion, something that has renewed urgency given Verizon's LTE launch last weekend. The company had other options if they absolutely needed cash, including selling some of their needed spectrum, or striking an investment deal with T-Mobile and their owner Deutsche Telekom, over which T-Mobile would then offer "4G but not" service. According to reports last week, Sprint's preference was for the latter, Sprint CEO Dan Hesse proclaiming he didn't think Clearwire would/should sell off spectrum. Well, according to Reuters, Clearwire is still considering selling off up to $2 billion in spectrum -- most likely to Sprint: Clearwire, which is 54 percent owned by Sprint Nextel (S.N), needs billions of dollars more funding to complete construction of its high-speed wireless network even after a $1.3 billion debt offering last week. It is considering an equity investment from a strategic partner like Sprint and a sale of wireless airwaves that it does not need for its service. Prusch said the company is half-way though a spectrum auction and has had interest from several partners who are doing due diligence. Sprint owns 54% of their Clear joint venture with Clearwire, but the two companies' relationship has turned sour over the last year. Sprint today hinted at an upgrade path that included LTE, meaning Sprint could be the buyer of that spectrum, then turn around and construct an LTE network. Our user reviews for Clearwire service aren't stellar, and Clearwire is starting to tighten its belt as the check comes due for a large portion of debt next year.
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 | | Um Why dosent Sprint just buy out the remaning 46% of Clear, and roll out wimax them damn selfs? | |
|  |  BHNtechXpertBHN StaffPremium,VIP
join:2006-02-16
Saint Petersburg, FL
kudos:32
 ·Clearwire Wireless
| Re: Um said by OSUGoose:Why dosent Sprint just buy out the remaning 46% of Clear, and roll out wimax them damn selfs?
Because there's only one company more screwed up than Clearwire...it's Sprint. Need I say more? | |
| | | | | Re: Um na, yourthinking of AT&T its ok common mistake around here, lol | |
| | | | BHNtechXpertBHN StaffPremium,VIP
join:2006-02-16
Saint Petersburg, FL
kudos:32 Reviews:
·Clearwire Wireless
| Re: Um said by OSUGoose:na, yourthinking of AT&T its ok common mistake around here, lol
Nope I wasn't...the comparison was between Sprint and Clear. | |
| | | | | | | Re: Um I would have thought att too. Oh we are not talking about networks, but who has more influence. Then ya, if the most lobbyiest equal the best, then ya att got it. | |
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| | | said by OSUGoose:Why dosent Sprint just buy out the remaning 46% of Clear, and roll out wimax them damn selfs?
If they buy them out there won't be any money left to buildout LTE... 
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.:|:. aztec being aztec...™ | |
| | | | | Re: Um WiMAX is to Sprints wireless group with ION was to the ION group. Other then 3G/EVDO, have you EVERY known sprint to see ANYTHING through or not screw it up?  | |
| | | | | | Re: Um WiMAX will be an amazing work house for DATA
What would you like Sprint to go to LTE and charge Verizon prices and cappss??? | |
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| | | | AND TD-LTE is years from being what WiMAX is today | |
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 kdwycha
join:2003-01-30
Riverview, FL | Sprint's $2.5 Billion Network Improvement Plan Hints At LTE Enough Said. Sprint needs 2 billion more to complete their network improvements! | |
| | | Heaven forbid that they might let a WISP buy some. WISPs could actually make good use of the spectrum rather than simply warehousing it. | |
| | |  What really will happen...
2. Clear buys shares from Sprint.
3. Clear declares backruptsy.
4. Sprint buys Clears WiMax Network for pennys on the dollar.
5. Sprint builds own LTE network with money from WiMax spectrum sale. | |
| | patcat88
join:2002-04-05
Jamaica, NY
kudos:1 | Re: What really will happen... You forgot the part where Verizon buys the wimax network, shuts it down, and sits on the spectrum for 2 decades. | |
| | | | | Re: What really will happen... OK, insert where appropriate.
Sprint then loans Clear money using spectrum/network as collateral and when Clear declares bankruptcy, takes control of spectrum/network. | |
| | | | patcat88
join:2002-04-05
Jamaica, NY
kudos:1 | Re: What really will happen... said by MNWatchdog :Sprint then loans Clear money using spectrum/network as collateral and when Clear declares bankruptcy, takes control of spectrum/network.
If your paperwork is absolutely perfect, that works. I'm not sure if "network" would get returned as collateral or not, since Clear built it, not Sprint. The spectrum definitely. But remember, most of Clears/Sprints wimax spectrum isn't owned by either, its leased "non-profit" EBS spectrum..... | |
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| | death of the opportunity i see nothing but a slow and painful death of the big opportunity these two companies had with a lead in front of AT&T and Verizon. Instead of squabbling over petty BS... Sprint should have let Clear run and blow things up. They should be running tons of big TV ads promoting their 4g... but no... Verizon is doing that. Give it a year and everyone will assume 4g is something that all companies like Verizon have. Missed opportunity. Forget about where they are with spectrum... its all about what the consumer knows. | |
|  ztmikeMark for moderationPremium
join:2001-08-02
Michigan City, IN
1 edit |  Here's a thought..
Yet they have all this spectrum.
This is where all that bailout money should of went..getting Americas data networks up to speed with the rest of the world, yet no we taxpayers pay for people who have no common sense. Who in the end will just mess up again. | |
| | Sammer
join:2005-12-22
Canonsburg, PA | Re: Here's a thought.. said by ztmike:This is where all that bailout money should of went..getting Americas data networks up to speed with the rest of the world, yet no we taxpayers pay for people who have no common sense. Who in the end will just mess up again.
If the money had gone to AT&T, Verizon, Sprint, T-Mobile USA, and Clearwire as corporate welfare it would have just been wasted. We could have built a taxpayer owned (privatized operation) world class fiber to the premises network for a third of the bailout money that the rest of world would have envied. | |
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