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Sprint Hashing Out New LTE Sharing Clearwire Deal
Cementing the LightSquared, Sprint, Clearwire Super Union

Clearwire stock has been taking a beating in recent weeks due to ongoing financial worries -- made worse by the company's planned migration to LTE. The stock took an additional beating recently on the news that major partner Sprint would be building their own LTE network, an announcement that left Clearwire somewhat absent from the equation.

Discussing this morning's earnings however, Sprint announced that the company is negotiating a network sharing arrangement with Clearwire, sending Clearwire stock soaring. According to Sprint CEO Dan Hesse, Sprint may route some LTE traffic over Clearwire's network starting in 2013. Clearwire has been making a clear shift from retail to wholesale, insisting they'd like to be the "Switzerland of wireless," despite the fact they've got clear enemies in AT&T and Verizon.

The Clearwire Sprint negotiation news isn't shocking; we noted back in March Sprint was planning their own LTE build in part to give them additional leverage in negotiations with Clearwire. Sprint's current build plans involve using their own 800 MHz spectrum, 1900MHz PCS band and LightSquared's 1600MHz spectrum for LTE FDD. Sprint still needed additional spectrum, and pending waiting for Clearwire to collapse (gobbling assets on the cheap), a renewed deal was the obvious path.

A subsequent Clearwire, LightSquared and Sprint super-union was also something that has been fairly obvious for some time, despite Sprint's occasionally contentious relationship with Clearwire. Sprint and LightSquared announced a fifteen year LTE arrangement back in June, though use of LightSquared's spectrum still requires the hurdling of GPS interference issues and regulatory approval.
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LineNoise
join:2006-06-25
Downers Grove, IL

LineNoise

Member

well duh

This was the only logical outcome. Sprint is spending way too much money on Network Vision to buy Clearwire outright.

There better be some awesome backhaul going to these sites if they're going to be running 3 LTE networks, 1x and EVDO.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: well duh

def. but that will be what will bring Sprint to their knees. They don't have the $$$ to really build out Network Vision and they don't really have the money to put in any backhauls without depending on their partnerships with the MSOs and Clear. And yet- Clear still goes to the MSOs since they are a HUGE partner in the company.
LineNoise
join:2006-06-25
Downers Grove, IL

LineNoise

Member

Re: well duh

wat

Clearwire going to the MSOs? Do you mean it's going to broken up and divested to the MSOs? Or that their network is going to be wholesaled to the MSOs?
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: well duh

their fiber is from the MSOs. Just like Sprint. My post clearly says BACKHAUL as well. Nothing about splitting up Clear.
LineNoise
join:2006-06-25
Downers Grove, IL

LineNoise

Member

Re: well duh

In Chicago the backhaul is done through microwave. Is it widespread that they're utilizing fiber from MSOs in other markets?
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: well duh

Yes they're always talking about fiber to the tower. They get this from their partners. The ones with the fiber closest to towers are the MSOs. You don't think T or VZ has fiber 20 miles out of a city where Comcast or TWC is the only HSI provider do ya? And some backhaul there maybe done via Microwave, but not all of it. You gotta connect it to a hardwire at some point.

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx

Member

GPS

though use of LightSquared's spectrum still requires the hurdling of GPS interference issues and regulatory approval.
I don't think that will be a hurdle. It has been very quiet lately and that means the payoffs are taking place behind the scenes. I would not be surprised if the FCC announces soon "nothing to see here" and approves LightSquared's build. Too many companies, including Sprint, are relying on this as yet to be built system to support their operations. There is too much money riding on this not going through.

Karl Bode
News Guy
join:2000-03-02

Karl Bode

News Guy

Re: GPS

That money is going both directions though. You have to think AT&T and Verizon lobbyists have their hands in there drumming up some of this political opposition.

Still I'd tend to agree...I'd also expect the AT&T/T-Mobile deal to ultimately be approved with LightSquared used early and often by the FCC as an example of "vibrant" competition...
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: GPS

And Sprint would have competition if they'd learn to compete. While everyone is lowering prices Sprint's the one that is staying the same while raising the prices of their prepaid companies. Talk about Sprint wanting their cake and eating it too. Sprint's BoD needs to get rid of Hess and move onto another CEO that knows how to run a company.

scavio
Premium Member
join:2001-07-14
Melmac

scavio

Premium Member

Re: GPS

said by 25139889:

And Sprint would have competition if they'd learn to compete. While everyone is lowering prices Sprint's the one that is staying the same while raising the prices of their prepaid companies. Talk about Sprint wanting their cake and eating it too.

I'm still trying to figure out what you are trying to say. I've read your post five times and it makes no sense. What cake is Sprint trying to eat?

I'm not sure why you dragged prepaid into the discussion, Sprint is actually doing well with that. It's their postpaid (where they are still considered the most budget friendly national carrier) that is struggling.
LineNoise
join:2006-06-25
Downers Grove, IL
(Software) pfSense

LineNoise

Member

Re: GPS

I can't figure out what in the hell he's talking about either. He's a troll just looking to stir the pot.

Hesse has done a decent job with what was given to him. Sprint needs this network upgrade otherwise there might as well just go pre-paid and join the likes of MetroPCS and Cricket.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned) to scavio

Member

to scavio
It's not hard to understand. Sprint wants to place their company as the "best" carrier by keeping their prices the same and yet trying to kill merger deals with other companies due to they claim they're "going to hurt" Sprint. But in return Sprint is hurting themselves by not only crying about something they have no control over with the mergers; they're putting themselves out of business by keeping their prices on the high end with companies like TMO are lowering their prices- even on the business side; $49.99 per business line with unlimited everything- Sprint wants much more and 2x the price for the device. T and CellCo lower their prepaid plans along with TMO- what's Spent do? They raise the prices and yet still claim that the merger will kill them. Sprint is putting the nails in their own coffin; especially with now claiming they're going to need more funding due to OVER spending on the iPhone. Sprint is doing nothing but setting their own self up to fail and hoping someone will buy them up.

And prepaid was dragged in because its one of the main parts of Sprint. You don't think all their customers are actually on post paid do ya? Between Virgin Mobile and Boost that is where Sprint makes their money due to they don't have to worry about anyone running up a huge bill and not paying it. And Sprint the most budget friendly? Will they give me a national plan with unlimited everything like TMO for $49.99? With no contract? And no extra fees for 4G speeds? I don't think so.
talz13
join:2006-03-15
Avon, OH

talz13 to 25139889

Member

to 25139889
said by 25139889:

While everyone is lowering prices Sprint's the one that is staying the same while raising the prices of their prepaid companies.

Who's lowering prices?
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: GPS

TMO has lowered prices. T has lowered prices and so has Cellco. Just because its on Prepaid services doesn't mean anything. Sprint is actually raising their prepaid prices. But yet still crying that the TMO-T deal would kill them. Maybe if they'd learn to lower prices and attract more customers to them regardless if its prepaid or post paid Sprint may have a chance.
Sammer
join:2005-12-22
Canonsburg, PA

Sammer to Karl Bode

Member

to Karl Bode
said by Karl Bode:

I'd also expect the AT&T/T-Mobile deal to ultimately be approved with LightSquared used early and often by the FCC as an example of "vibrant" competition...

IMHO the AT&T/T-Mobile merger won't be approved because the Justice Department (not the FCC) will fight it tooth and nail. Justice has already in effect called AT&T a bully and if they can't stand up to AT&T then the Justice Department can't stand up to any bully.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: GPS

DoJ will roll over and move on when T would tell them sorry, no more data from their network. T has what they want. And the DOJ knows it.
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin to Karl Bode

Member

to Karl Bode
said by Karl Bode:

That money is going both directions though. You have to think AT&T and Verizon lobbyists have their hands in there drumming up some of this political opposition.

Still I'd tend to agree...I'd also expect the AT&T/T-Mobile deal to ultimately be approved with LightSquared used early and often by the FCC as an example of "vibrant" competition...

I just want the FCC to do a spectrum swap with Lightsquared. I mean even if LS is allowed to use the bottom 10 MHz (or possibly only the bottom 5) of their 20 MHz spectrum swath, how are they going to act as a "wholesale ISP"? 10 MHz is a paltry amount. I think MetroPCS has 5. And it's not even in the coveted 700 MHz territory.

That's a lot of money to spend on a network that will have such limited capacity. And one where that capacity is supposed to be wholesaled- so the more the better.

If they really want to build a nationwide network, they're going to need a sub 1000 MHz spectrum swath. I just don't understand their business plan. What the heck was Phillip Francone thinking?

mix
join:2002-03-19
Romeo, MI
GL.iNet GL-B1300
Netgear CM500

1 edit

mix

Member

Re: GPS

Agreed. The defense dept, faa, etc. stated their cases. But I think they will start swinging if they are ignored and this deal goes through. We know the military has HARM missisles for radars, jammers and other annoying electronics. Don't you think they have missles designed to seek and destroy GPS jammers too?
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned) to n2jtx

Member

to n2jtx
And when the FCC approves the L2 Deal the FAA will come along and sue the FCC and Congress and the Courts must step in as the FAA has more control over the airwaves than the FCC. Especially when its a matter of public safety for aircrafts. FAA could really put Sprint's Vision plan on the back burner indef.

tito79
join:2010-03-14
Port Saint Lucie, FL

tito79

Member

Re: GPS

Sprint should had aquired clear and called it a day.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: GPS

Sprint has partners they have to buy out. Do you really think Sprint has the money to buy them out now after buying the iPhone and saying they're going to need a ton of cash?

Oh_No
Trogglus normalus
join:2011-05-21
Chicago, IL

Oh_No to n2jtx

Member

to n2jtx
The lightsquared network cant move forward due to interference with GPS. There is no way the FCC can approve it without ignoring their own order to lightsquared.

The FCC gave lightsquared a chance to prove they would not have interference on the satellite only frequencies and lightsquared failed.
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

Re: GPS

said by Oh_No:

The lightsquared network cant move forward due to interference with GPS. There is no way the FCC can approve it without ignoring their own order to lightsquared.

The FCC gave lightsquared a chance to prove they would not have interference on the satellite only frequencies and lightsquared failed.

I think they can do it if they only use the bottom 5 MHz. But then their network capacity is only as good as MetroPCS's. How do you "wholesale" that out?

openupshop
join:2000-11-25
Chandler, AZ

1 edit

openupshop

Member

Clearwire LTE Test Video. Blazing Speed!

»www.youtube.com/watch?fe ··· eK-mRBlk

megarock
join:2001-06-28
Fenton, MO

megarock

Member

Umm..

Since Lightsquared purchased the spectrum from the FCC auction wouldn't the FCC get sued because the spectrum is unusable? Could you imagine AT & T buying spectrum then being told it's not usable because it interferes with cable TV or something ludicrous like that?

Oh_No
Trogglus normalus
join:2011-05-21
Chicago, IL

Oh_No

Member

Re: Umm..

said by megarock:

Since Lightsquared purchased the spectrum from the FCC auction wouldn't the FCC get sued because the spectrum is unusable? Could you imagine AT & T buying spectrum then being told it's not usable because it interferes with cable TV or something ludicrous like that?

No.
The original company that leased the spectrum did so to use it for satellite broadband only with a ground base "secondary backup" incase the satellite failed. When people talk about a 2003 waiver they were refering to the 2003 FCC rule that required a groundbased "secondary" backup transmitters for satellite broadband that still had to comply with interference issues.
That company was bought by lightsquared.
Lightsqaured has then tried to get an actual waiver to allow the ground system to be the "primary".
The FCC granted them a waiver with the condition that they could not cause interference with things like GPS.

Lightsquared had a chance but caused lots of interference so they cant have a ground based system on those satellite only frequencies.

Lightsquared never was allowed to have a ground based system on the satellite only frequencies. The FCC did nothing wrong.
Lightsquared has a choice to only offer satellite only broadband or sell that spectrum to someone else. Lightsquared has no grounds to sue the FCC as it is the interference that stopped their project not some political action by the FCC.
tmc8080
join:2004-04-24
Brooklyn, NY

1 recommendation

tmc8080

Member

meanwhile...

sprint keeps jacking up their prices especially on mvno's like virginmobile they won't have customers...

the higher the price goes, the fewer customers minority carriers will have..

unfortunately these economics break the mold when you are in a zone not covered by these competitors and you suffer duopoly predatory pricing.. too bad for those millions of customers. well, there's always prepaid so you dont' have to stay loyal to any one company or mvno.
25139889 (banned)
join:2011-10-25
Toledo, OH

25139889 (banned)

Member

Re: meanwhile...

very true! but VM isn't a true MVNO it's just a step child of Sprint. Sprint makes the money and counts those customers as their own. Sprint is the only company that keeps pushing those prices higher and higher and the others keep going down and down.