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Clearwire Has 12 Months' Worth of Cash
Will the company survive long enough to get Sprint deal done?
by Karl Bode Tuesday 26-Aug-2008 tags: competition · business · alternatives · wireless · Clearwire Wireless
Tipped by hayabusa3303 See Profile
According to a new SEC filing, WiMax broadband provider Clearwire has enough money to survive about twelve months, assuming the company's deal with Sprint to build a national mobile WiMax network goes off without a hitch. Clearwire has stated they need an additional $2 to $2.3 billion to roll out a nationwide mobile WiMax network through 2010 and beyond, though Unstrung says some analysis peg the costs to be much higher. Of course the deal getting delayed is a very real possibility, thanks in part to AT&T's ongoing efforts to scuttle it. Marketwatch explores how AT&T is fighting the creation of the new Clearwire not just for competitive reasons, but to get the FCC to make regulatory rulings that will benefit the nation's largest broadband and wireless phone carrier.

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brianiscool

join:2000-08-16
40303
kudos:1

yes

Go out of business!
Jonbo298

join:2004-01-12
Council Bluffs, IA

LTE

With what seems like most carriers choosing LTE instead of WiMax, its going to be a tough sell to consumers if they don't get WiMax going "mass market" asap and push it hard. I don't see Clearwire lasting much longer even if the deal goes through. It's almost like looking at Earthlink all over again.
EPS

join:2008-02-13
Hingham, MA

Re: LTE

Nobody's going to be selling "WiMax" or "LTE", except in the smaller print. My guess both will be branded with "4G" now that Apple has made "3G" a mainstream term in the United States.

BillRoland
Premium
join:2001-01-21
Ocala, FL
kudos:2

Taking too long

Its taking too long for Clearewire to build out coverage. AT&T and Verizon will be rolling out LTE across their footprint long before Clearwire is able to establish a competitive threat at the rate they're moving now.
--
"Don't steal. The government hates competition."

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Taking too long

There's a good possibility.
WiMAX may be able to deliver product, however, its been hype for so long now (few years?), that WiMAX will be not a direct competitor to LTE, but more of a niche service offering, which will probably not bring in the revenue needed.
The 'good' part is that WiMAX isn't a fixed service offering, and can be implemented for just about any purpose.
Kind of like a flexibility of bluetooh/WiFi, with range of cellular (if not better), but running in licensed airspace.
--
Canada = Hollywood North

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
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said by BillRoland:

Its taking too long for Clearewire to build out coverage. AT&T and Verizon will be rolling out LTE across their footprint long before Clearwire is able to establish a competitive threat at the rate they're moving now.
Clearwire has some big money backers(Comcast, Intel, Google). The question is how long will they keep funding things if Clearwire doesn't move more quickly in establishing itself and signing up large numbers of customers. The stockholders for Comcast, Google, & Intel will start complaining to their boards if progress isn't made. They won't pump money down a rat hole for very long.
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BillRoland
Premium
join:2001-01-21
Ocala, FL
kudos:2

Re: Taking too long

said by Romney2012:

said by BillRoland:

Its taking too long for Clearewire to build out coverage. AT&T and Verizon will be rolling out LTE across their footprint long before Clearwire is able to establish a competitive threat at the rate they're moving now.
Clearwire has some big money backers(Comcast, Intel, Google). The question is how long will they keep funding things if Clearwire doesn't move more quickly in establishing itself and signing up large numbers of customers. The stockholders for Comcast, Google, & Intel will start complaining to their boards if progress isn't made. They won't pump money down a rat hole for very long.
I have to agree, Clearwire better not be expecting too many more bailouts by the big guys, unless results show up fairly soon I think the investments are going to dry up pretty quick.
--
"Don't steal. The government hates competition."

S_engineer
Premium
join:2007-05-16
Chicago, IL

Re: Taking too long

I don't see how they could possibly get a quick return on investment. The municipalities won't pony up for it, Americans are getting gouged across the board for services that are already being rendered. I just do not see it happening!
Nice avatar bill.
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The "Lifetime" channel is responsible for 83% of all divorces...Robert Ginty

a333
A hot cup of integrals please

join:2007-06-12
Rego Park, NY
LTE? It's not even out of the labs yet innit? 'Least WiMax has been adopted in the real world...

MarkyD
Premium
join:2002-08-20
Oklahoma City, OK
said by BillRoland:

Its taking too long for Clearewire to build out coverage. AT&T and Verizon will be rolling out LTE across their footprint long before Clearwire is able to establish a competitive threat at the rate they're moving now.
AT&T still hasn't managed to cover 1/2 the EVDO areas with 3g, so I wouldn't hold my breath on that one...
xenophon

join:2007-09-17

Re: Taking too long

Say what? ATT doesn't even have 1/5 the 3G area coverage that Sprint and Verizon have.

MarkyD
Premium
join:2002-08-20
Oklahoma City, OK

Re: Taking too long

said by xenophon:

Say what? ATT doesn't even have 1/5 the 3G area coverage that Sprint and Verizon have.
that was my point. I may have worded it poorly, I was saying that AT&T's 3g coverage is abysmal.
xenophon

join:2007-09-17
It's because Clearwire can't really make a move until the merger is approved. Once approved they absolutely must move fast and get WiMAX into as many markets as they can to get traction.
EPS

join:2008-02-13
Hingham, MA

Re: Taking too long

The current Clearwire has spectrum assets of its own in some markets and could deploy at least in those areas before the merger.

skymax

@bu.edu

Real Threat?

If the Clearwire/Sprint network was not a real threat, AT&T would just ignore them.

Mike_

join:2003-06-24
Fort Lauderdale, FL
Reviews:
·Verizon Wireless..
·Comcast

1 edit

Re: Real Threat?

said by skymax :

If the Clearwire/Sprint network was not a real threat, AT&T would just ignore them.
Couldn't have said that better
They just need FCC approval is all. at&t the monopoly wanna-be is sweating seeing the enormous backing clearwire has and wants to slow it all down.

As to LTE - if you read about it, both wimax and lte stem from the same idea of connectivity, lte using 85% of what wimax has already been built on. Those supposed better speeds of LTE are of lab tests and of course not near real world speed as there isn't any yet.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
I would tend to agree.. however, its much cheaper (and lawyers are already being paid for) to do the 'ounce of prevention is worth a pound of cure' approach. I'm sure that Microsoft never saw Netscape as much of a threat either, but ran them bankrupt regardless, as it was 'the right thing to do'.
--
Canada = Hollywood North

SHABAZZ

join:2008-07-13
Seattle, WA

LTE who...

What people outside of the wireless world don’t realize is that your capabilities are limited by how much megahertz of spectrum you have. The carriers that are deploying LTE have on average 10 to 55 MHz per market. If the deal between Clearwire and Sprint goes through the new company will have around 120 MHz per market. LTE will work just fine as long as there isn’t more than a few users on the sector.
xenophon

join:2007-09-17

Re: LTE who...

This is the reality and is why ATT is challenging the merger. Sprint/Clearwire can potentially leapfrog all US carriers in data if they find the bucks to rollout nationwide.

They will leave everyone else in the dust with as much spectrum they have.
EPS

join:2008-02-13
Hingham, MA

Re: LTE who...

As long as Clearwire can keep getting funding in these initial stages, at least...

The thing is, with the 700Mhz spectrum VZW (and T, though they aren't planning LTE until a few years later than VZW) can potentially deploy much faster with less towers- however, the network will have less capacity. If "the new" Clearwire hasn't gotten at least its urban portions wired by then they could be left in the dust deployment-wise.

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