Clearwire Reports Strong First Quarter 2010 Results

• Total Ending Subscribers of 971,000, Up 94% Year Over Year
• Total Net Subscriber Additions of 283,000 - Greater than Full Year 2009
• Wholesale Subscriber Base Triples During the First Quarter 2010
• First Quarter Revenue of $107 Million - Up 72% Year Over Year
• Company Surpasses 50 million People Covered By Its Networks
• 4G WiMAX Smartphones By Samsung and HTC Expected to be Available Before End of 2010

KIRKLAND, Wash., May 05, 2010 (BUSINESS WIRE) --Clearwire Corporation (NASDAQ: CLWR), a leading provider of wireless broadband services, today reported its unaudited condensed consolidated financial and operating results for the first quarter of 2010.

"Customer demand for 4G services is truly making 2010 the year of mobile broadband, as always-on true mobile broadband keeps people connected to the information, services and applications that matter most," said Bill Morrow, CEO of Clearwire. "With record breaking subscriber growth, a robust wholesale 'network of networks' approach to 4G, and customer usage that far surpasses anything seen on 3G networks today, Clearwire is standing at the forefront of the next evolution in telecommunications and technology."

Clearwire ended the first quarter with 971,000 total subscribers consisting of 814,000 retail subscribers and 157,000 wholesale subscribers. During the first quarter 2010 Clearwire added 283,000 net new subscriber additions including 172,000 retail additions and 111,000 wholesale additions. Greater than one-third of our wholesale subscribers consist of subscribers on dual mode devices that reside outside of our currently launched markets, but for whom we receive monthly recurring revenue.

Revenue for the first quarter 2010 was $106.7 million, a 72% increase over first quarter 2009 revenue of $62.1 million and a 33% increase over fourth quarter 2009 revenue of $79.9 million. Retail average revenue per subscriber (ARPU) was $42.77 in the first quarter 2010. Retail ARPU in the first quarter includes the positive impact of $1.22 related to a prior period adjustment to account for incentive discounts over the lives of customer contracts. Without this adjustment first quarter ARPU was $41.55.

Retail cost per gross subscriber addition (CPGA) improved to $439 in the first quarter 2010, down from $624 in the fourth quarter 2009. The decline in CPGA is largely a function of greater gross additions, better overall marketing efficiencies and fewer market launches.

Retail monthly churn also improved to 3.0% in the first quarter 2010 compared to 3.6% in fourth quarter 2009. During the first quarter, the Company completed the conversion of the Hawaii, Seattle and Carolina markets to its 4G network, and the subscriber churn rate in the non-conversion markets was 2.7%.

The first quarter 2010 net loss attributable to Clearwire was ($94.1) million, or ($0.47) per basic share, as compared with the fourth quarter 2009 net loss attributable to Clearwire of ($98.7) million, or ($0.55) per basic share. The first quarter 2009 net loss attributable to Clearwire was ($71.1) million or ($0.37) per basic share.

The first quarter 2010 adjusted earnings before interest, taxes, depreciation and amortization and non-cash expenses related to capital assets (adjusted EBITDA) loss was ($251.6) million, an improvement from fourth quarter 2009 adjusted EBITDA loss of ($295.7) million. The adjusted EBITDA loss for the first quarter 2009 was ($144.0) million.

2010 Business Outlook

Clearwire continues to expect to cover up to 120 million people with its 4G network by the end of 2010. Within this footprint, services will be offered under both the CLEAR(R) brand name, and those of the Company's strategic wholesale providers which will vary across individual markets.

The Company also continues to expect that total subscriber levels will triple in 2010 from the end of 2009 levels and that it will end 2010 with more than 2 million total subscribers. The Company expects average 2010 retail CPGA to be in the mid $500's and consistent with the average CPGA for 2009, while average retail ARPU is now expected to remain above $41.00 for 2010.

The timing and extent of our future plans are subject to a number of conditions, including the performance in our launched markets and access to additional funding. The Company currently expects to have full year 2010 net cash utilization between $2.8 billion and $3.2 billion.

In recent weeks, the Company has expanded its 4G mobile broadband network service area with five new markets covering nearly five million people, including Houston, TX in March, and earlier this week in Harrisburg, Reading, Lancaster and York, PA.

Clearwire also today announced plans to launch 4G mobile broadband service in 19 additional cities this summer, including previously announced markets Kansas City, KS; St. Louis, MO; Salt Lake City, UT, and the core area of Washington, D.C. and newly announced markets Nashville, TN; Daytona, Orlando and Tampa, FL; Rochester and Syracuse, NY; Merced, Modesto, Stockton, and Visalia, CA; Wilmington, DE; Grand Rapids, MI; Eugene, OR; and Yakima and Tri-Cities, WA.

In addition, the Company reiterated its plans to launch Clearwire's 4G network in other major markets across the country by the end of 2010, including New York City, Los Angeles, Boston, Denver, Minneapolis, the San Francisco Bay Area, Miami, Cincinnati, Cleveland and Pittsburgh.

The Company also expects to launch two WiMAX smartphones by the end of 2010. From Samsung, an Android-based 3G/4G/WiFi device optimized for heavy video and video communications use, and a 3G/4G/WiFi enabled phone from HTC.

Other Results of Operations

Cost of goods and services and network costs for the first quarter, 2010 increased 96% to $144.6 million compared to $73.6 million for the first quarter 2009. This increase is due to increased tower lease and backhaul expenses resulting from the launch of 4G markets.

Selling, General and Administrative (SG&A) expense for the first quarter 2010 increased 106% to $223.8 million compared to $108.5 million for the first quarter 2009. The increase is primarily due to higher sales and marketing and customer care expenses in support of the launch of new markets, as well as additional resources, headcount and shared services that we have utilized as we continue to build and launch our 4G markets. Employee headcount at March 31, 2010 increased to approximately 3,595 compared to 2,015 employees at March 31, 2009.

Higher network expansion activities led to an increase in Capital Expenditures (CapEx) to $690 million in the first quarter 2010 from CapEx of $112 million for the first quarter 2009. Net cash spending, including operating activities, capital expenditures and spectrum purchases; net of proceeds from financing activities, was $842 million. We ended the first quarter of 2010 with cash and investments of approximately $3.1 billion invested primarily in U.S. Treasury securities.

Google Chrome OS Netbook 4G MVNO

Could this be a good time to invest in Clearwire Communications (CLWR) they have entered into an agreement with Google to collaborate on a number of products and services. Clearwire Communications will also support the open-source Android platform and will work with Google to to offer certain other applications.

Major investors in Clearwire Communications are Sprint, Comcast, Time Warner Cable, Bright House Networks, Intel and Google.

Clearwire's Ben Wolff on nationwide WiMax

Clearwire's CEO talks about building out WiMax nationwide, finding Wimax's killer app and surviving the economic downturn.

Click for article on Computerworld

Clearwire shareholders back Sprint venture

NEW YORK, Nov 20 (Reuters) - Clearwire Corp (CLWR) said on Thursday its shareholders had voted to approve its proposed high-speed wireless joint venture with Sprint Nextel Corp (S) that includes an investment of $3.2 billion from cable, Web and chip partners.
Analysts had widely expected the vote, which was the last remaining hurdle for the deal, to be in favor of the venture, which will take on the Clearwire name. The venture would build a network based on WiMax, an emerging high-speed wireless technology.
Clearwire, which has the consent of the majority of its lenders, said it expects to amend and restate its credit agreements shortly to permit the deal.
In early May Clearwire and Sprint announced plans for a $14.5 billion venture that they hope would give them a head-start on AT&T Inc (T) and Verizon Wireless in developing the next generation of wireless data services.
As part of the deal, five strategic partners are investing a combined $3.2 billion in the venture. They include Intel Corp (INTC), Google Inc (GOOG), Comcast Corp (CMCSA), Time Warner Cable Inc (TWC) and Bright House Networks.
It wasn't immediately clear why shares of both Clearwire and Sprint were down sharply following the news.
Clearwire fell 23 percent to $4.46 at mid-afternoon on Nasdaq. Sprint dropped 20 percent to $1.50 on New York Stock Exchange. (Reporting by Sinead Carew, editing by Richard Chang)

Wolff outlines top management for "new" Clearwire

Ahead of the finalization of its joint venture with Sprint Nextel's Xohm unit, Clearwire Corp. provided details about its top management, and said its chief financial officer was leaving the company. 

In an SEC filing, Ben Wolff, Clearwire's CEO, said that Barry West would be the company's president and chief architect, and that Atish Gude would serve as the chief marketing officer of the mobile WiMAX company. In the filing, Wolff also said that CFO Jon Butler would be stepping down to "spend more time with his family."

Both West and Gude will relocate to Clearwire's offices in Seattle.

Clearwire announced in May that it was merging with Sprint's Xohm unit to create a new company, and the joint venture has received billions of dollars in capital investment from Google, Comcast, Intel and other Internet and technology power players. Wolff said he expects to have all staff positions finalized by Oct. 31.

Clearwire, Sprint Nextel to merge wireless units

KIRKLAND, Wash. — Clearwire and Sprint Nextel are planning to merge their wireless broadband units to create a new $14.55-billion (U.S.) wireless communications company.

The new company, to be named Clearwire, will receive a $3.2-billion investment from Intel Corp., Google Inc., Comcast Corp., Time Warner Cable Inc. and Bright House Networks. The investment is based on a target price of $20 per Clearwire share and will give the companies a 22 per cent stake in the new venture.

Sprint Nextel Corp. will be majority owner with a 51 per cent equity stake, while existing Clearwire shareholders will receive about 27 per cent interest.

Clearwire, which will concentrate on rolling out a mobile network based on the emerging WiMAX standard, will also receive an investment from Trilogy Equity Partners, led by U.S. wireless industry veteran John Stanton.

WiMAX promises faster download speeds than the latest networks run by cell-phone operators, and it's even seen as a potential competitor to fixed-line broadband.

Sprint and Clearwire, a startup founded by cellular pioneer Craig McCaw, had already announced their plans to build out networks using WiMAX technology, but had been looking for outside funding.

The new company will be led by Clearwire Chief Executive Benjamin Wolff, with Sprint Chief Technology Officer Barry West serving as president. West also leads Sprint's XOHM division.

The Kirkland, Wash.-based venture will house workers from Clearwire and Sprint's XOHM unit and will have research and development and other operations located in Herndon, Va.

The deal, which has been approved by the boards of all companies involved, is expected to close during the fourth quarter.

Clearwire, Sprint resume talks

Wireless Internet provider Clearwire Corp. and cellular operator Sprint Nextel Corp. have reportedly restarted talks to combine their high-speed wireless WiMax networks.

Sprint and Clearwire are discussing a joint venture that would attract funding from Intel Corp., a major backer of WiMax technology, which promises faster wireless Web connection speeds for laptops and cell phones than mobile operators' third-generation networks.

The companies have also approached Google Inc. and Best Buy Inc. about financing, according to a Wall Street Journal report.

Sprint has started rolling out its WiMax network in some markets and has said it wants to reach 100 million U.S. consumers by the end of this year.

Helen Chung, a Clearwire spokeswoman, declined to comment on the report. A Sprint spokesman did not immediately return a call and an e-mail for comment.

The companies' first attempt to forge a WiMax partnership ended in November, sending shares of the much smaller Clearwire down more than 40 percent in the ensuing weeks. Since then, the companies have discussed a plan to spin off Sprint's WiMax unit, called Xohm, and merge it with Clearwire, according to the report.

Clearwire operates pre-WiMax networks in 46 U.S. markets, including Seattle, Syracuse, N.Y., and Duluth, Minn. The Seattle-based company, founded by cellular pioneer Craig McCaw, is testing a full-fledged WiMax network in Portland, Ore.

Shares of Clearwire skyrocketed $2.43, or 19.5 percent, to $14.88 in afternoon trading, while Sprint's stock jumped 78 cents, or 7.8 percent, to $10.75.

Can Sprint Hang On to WiMAX in the Face of a Financial Struggle?

“Sprint is under increasing financial pressure as it loses subscribers to competitors such as Verizon, T-Mobile, and AT&T,” says Phil Solis, principal mobile broadband analyst at ABI Research. “Many say Sprint should focus on its core business rather than push forward with WiMAX, but this idea is nonsensical.”

ABI Research believes that within the general context of competitive prices, extensive marketing campaigns, and the continual release of new devices, Sprint would be foolish to abandon a differentiator such as WiMAX.

“It’s ironic,” continues Solis, “because Sprint’s investors seem to be pressuring the company to slow down if not halt completely its WiMAX deployments; meanwhile this could be the best avenue to turn the company around.”

In July 2007, Sprint announced a partnership with Clearwire, splitting build-out costs 63%:37%, respectively. But rumors suggested a breakdown, causing Sprint to bear the full financial weight with respect to WiMAX development, thereby adding to its monetary burdens. Many believed the contract was severed, but in fact, the two companies never formed an official contract; only a letter of intent was signed.

“So in reality, a ‘breakup’ never occurred,” explains Solis. “And at present, both companies are continuing with their own mobile WiMAX networks, with various options still open – a partnership remains viable. This may take a form roughly similar to what was originally conceived, or it may be a roaming arrangement.”

WiMAX network deployments hold great potential to re-shape the global telecommunications industry due to WiMAX’s expanded device array in which handsets play just a small part. Other 3G and 4G air interfaces will do this as well, as noted by Samsung’s HSPA-enabled camera, Amazon’s Kindle e-book reader with EV-DO, and Verizon Wireless’ announcement that it will open its network to any device supporting its air interfaces and spectrum; but there is a bigger push to do this with WiMAX, and it is expected that WiMAX chipset prices will be more competitive than 3G chipsets.

The recent ABI Research report WiMAX Market Analysis and Forecasts examines major drivers and barriers for WiMAX and compares it with 3G and other 4G technologies, and contains forecasts for 802.16-2004 and 802.16e-2005. It forms part of two ABI Research Services: Mobile Broadband, and Wireless Infrastructure.


ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call +1.516.624.2500.

McCaw Bets Again on Wireless Frontier

An article in the Wall Street Journal sheds a bit more light some of the plans Sprint and Clearwire have been considering for their WiMAX businesses after ending their plans to build out a nationwide network together. The article, which features a rare interview with Clearwire's Craig McCaw (although very light on the quotes and attributions), says Sprint's board last week rejected a plan to spin off the WiMAX unit and merge it with Clearwire. Meanwhile, it says Clearwire is holding discussions with parties that might include Intel, Comcast and Google about a direct partnership.

Read Full Article »

New WiMax Players Could Emerge As Sprint, Clearwire Split

NEW YORK -(Dow Jones)- The early end to the partnership between Sprint Nextel Corp. (S) and Clearwire Corp. (CLWR) opens the possibility of others getting involved with WiMax, a longer range version of WiFi seen as an attractive way of connecting consumers online.

Those who might pursue a WiMax partnership include Google Inc. (GOOG), cable companies or satellite TV providers. Clearwire - which builds and operates the WiMax network and service - also could try to expand the business itself, and then there's the possibility that Sprint, after it finds a new chief executive, could seek a reconciliation.

"It's fair to say we are looking and exploring all of our potential strategic options," Clearwire Chief Executive Ben Wolff told analysts on a Friday conference call. "There's quite a lot of focus on this space now."

The attraction of WiMax isthe ability to provide an alternative road to the Internet, freeing a number of industries from the stranglehold placed on them by the telecommunications and cable companies. The potential to offer mobile phone service over WiMax is attractive to cable. For Clearwire, Kirkland, Wash., partnering with a household name gives it instant credibility and the means to acquire additional wireless spectrum.

But the cost of building out the network may serve as a detriment to some, and was likely a concern that Sprint, Reston, Va., factored in when ending its partnership.

Sprint's departure is a huge blow to Clearwire. Shares are down 25% to $13.46.

Google In Play?

Of all the possible alliances, the most intriguing is a potential deal with Google. The Internet giant recently unveiled its Android mobile phone operating system and the Open Handset Alliance in an effort to push its philosophy of an open network, which would fit well with WiMax wireless technology.

Google also plans to participate in the upcoming Federal Communications Commission auction for wireless spectrum, which could give it the necessary spectrum to build a national network, although it has little interest in building one.

Enter Clearwire, which could handle the deployment and run the service for Google. In return, it would get the backing of a high-profile company and nationwide reach. Industry observers say that the expanded reach is critical when launching a new service, and that a local market approach won't cut it.

"If you build a national product, you need a powerful brand, or be willing to work with multiple partners with powerful brands who can attract a large customer base," said Rory Altman, a partner at consulting firm Altman Vilandrie & Co.

Google couldn't immediately be reached for comment. Wolff, on the call, said the company doesn't comment on any potential partnerships.

Cable, Satellite In The Mix

Clearwire also has a partnership with DirecTV Group Inc. (DTV) and EchoStar Communications Corp. (DISH) in which the satellite companies will bundle its television service with Clearwire's WiMax connection, giving it a pipe into the home.

An independent Internet pipe into the home is critical for the satellite companies because their major bundling partner, the telecommunications companies, are building their own TV service.

"Without (another Internet connection), they risk economic foreclosure in the 40% of the country where the telcos build fiber, as the only two broadband pipes available in that portion of the country will be tied - potentially inextricably - to competing video offerings," Craig Moffett, an analyst at Sanford C. Bernstein & Co. LLC, said in a note.

The satellite companies could strengthen its relationship with Clearwire and help it acquire more spectrum in the FCC auction. It attempted to buy spectrum in the last major auction a year ago, but was quickly outbid.

Both EchoStar and DirecTV say that they haven't changed their partnership with Clearwire, and declined to comment beyond that.

Sprint backing away from Clearwire opens up the possibility that the cable companies could get involved. The cable companies could work with Clearwire, but the more likely path is hooking up with Sprint. Moffett, while acknowledging it's quite speculative, said the cable companies could use WiMax to as the " answer to the wireless question."

A deal isn't without complications. The existing relationship - a cellular joint venture called Pivot - has been a disappointment, and Sprint recently stopped the expansion of its service. But the two parties remain close.

"Cable, despite the evident difficulties in getting their voice-based venture with Sprint off the ground, remains allied with Sprint," Moffett said.

Time Warner Cable Inc. (TWC) declined to comment. But on Wednesday, Chief Executive Glenn Britt told analysts the company was exploring different wireless technologies.

"There's an alphabet soup of this, but it's WiMax, 4G, et cetera, et cetera, and it's different flavors I don't think anybody in the whole world really understands exactly where the technology is going."

Comcast Corp. (CMCSK, CMCSA) also declined to comment.

Clearwire On Its Own

Clearwire could attempt to expand alone but would be relegated to a local player.

"Clearwire returns to more of a local market model," said Jonathan Schildkraut, an analyst at Jefferies & Co. "We're still seeing the early stages of that model coming together."

The company is deploying in smaller markets but still has few customers. In the third quarter, it added 49,000 subscribers to bring its base to 348,000. Because of the wireless spectrum it owns, it can only serve smaller markets.

Clearwire operates like a local wireless provider such as Leap Wireless International Inc. (LEAP), building from market to market in a slow expansion.

Sprint, meanwhile, said it is on track for a soft launch of its Xohm WiMax service, considered a longer range version of WiFi, by the end of the year, with a commercial launch expected next year. Spokeswoman Leigh Horner declined to comment beyond those plans, only saying that the company would further review its deployment next year.

The best move may be a reconciliation. Sprint and Clearwire fit together well both in terms of their complementary wireless spectrum and their experience with the technology, and they will likely still work together down the line. Sprint would have given Clearwire a national presence and depth in spectrum, as well as access to Sprint's backhaul network infrastructure.

"We are continuing to discuss with Sprint on how to best collaborate on building a WiMax network," Clearwire's Wolff said. "I can't say if a deal will be reached."

He noted that all of the reasons that brought the two parties together still remain, but that the company has to move forward.

"At the end of the day, Sprint and Clearwire will figure out ways to work it out," Schildkraut said. "I do not think that Sprint is going away in the WiMax world."

-By Roger Cheng, Dow Jones Newswires

One Companies Loss (Sprint) is another Companies Gain (Google)

Will the split between Clearwire & Sprint be to the advantage of Clearwire...Will Google buy Clearwire or Partner with them...

Sprint and Clearwire have big holdings in 2.5 GHz , other countries outside of the USA are also looking at 2.5 GHz as the place for WiMAX deployment. So that means that equipment etc. could work (potentially) worldwide. That isn't the case with 700 MHz, where only the U.S. is deploying it (so far) for wireless services. Everyone else is still using 700 MHz for television.

Now Sprint and Google have announced they're NOT working together. This is where it was going:

Sprint network bandwidth, location detection and presence capabilities will be matched with Google’s popular communications suite – Google AppsTM – that combines the GmailTM, Google CalendarTM and Google TalkTM services. Customers will be able to experience a new form of interactive communications, high speed Internet browsing, local and location-centric services, and multimedia services including music, video, TV and on-demand products.

Google is spreading its bets, and sees global potential in WiMAX.

Here is the thinking driving this latest Google rumor across the blogosphere. Google is interested in the 700 MHz spectrum auction. Google is also interested in WiMax. Since Google was a part of the Sprint, Clearwire WiMax partnership, the apparent end of that relationship would indicate that Google is out in the cold when it comes to a WiMax partner.

WiMax Massacre: Sprint (S) And Clearwire (CLWR) Split-Up

WiMax appears to be such a promising technology, at least on paper. It can send wireless broadband signals for miles from one base-station. If is faster than 3G, the core technology used for cellphone signals by AT&T (T) Wireless and Verizon Wireless.

WiMax can also send signals to PCs and hand-held devices. It is a broadband dream come true. It has the backing of tech giants including Samsung, Intel (INTC), and Motorola (MOT)

The only problem with WiMax is that it is not getting deployed around the US, at least not with any haste.

Sprint was to spend $5 billion to create a WiMax network that would reach 100 million people two years from now. WiMax start-up and recent IPO Clearwire (CLWR) was also building a network. It was probably going to need to spend as much as Sprint planned to. Both companies decided to link up and cooperate on the build-out and allow one another's customers to have free roaming privileges around the US.

But, Sprint and Clearwire broke off their agreement today. There has been pressure on Sprint to cut back capital spending as its core subscriber base has begun to drop. Sprint's recently departed CEO was a big WiMax champion.

Whither WiMax now?

For one, the Sprint plans are not dead. What becomes of them may depend on the thoughts of the company's yet-to-be-located new CEO.

Clearwire's stock is likely to take an awful beating on the news. But, Intel and others have a tremendous stake in the technology. The chip company is making products that could work in hundreds of millions of devices that would connect to a national WiMax network. Nokia (NOK), Samsung, and Mototola could bring in very large sums building the WiMax infrastructure and providing devices which will operate on it.

Look for a group of companies, perhaps lead by Intel, to put $2 billion or $3 billion into Clearwire. The company's market cap is only $3 billion, so the money might have to go in as a convertible preferred. That would probably give Intel and its partners de facto control of Clearwire.

But, it will take something at least a bit extreme to keep WiMax in the US on track.

Douglas A. McIntyre

Clearwire Introduces Its First High-Speed Wireless PC Card

The Clearwire pc card Brings “True Broadband”™ Experience to People on the Go

KIRKLAND, Wash.--(BUSINESS WIRE)--Clearwire Corporation (NASDAQ:CLWR) announced today the availability of the first Clearwire pc card through all of its distribution channels in its markets across the United States. Based on Clearwire’s guiding principles of simplicity, reliability, high speed and affordability the Clearwire pc card delivers a “True Broadband”™ experience unlike any other pc card available in the market place today.

“Building on the success of our residential broadband services, the Clearwire pc card offers consumers, business and enterprise customers the ability to experience all that the Internet has to offer while they are on the go anywhere within our coverage area,” said Ben Wolff, Clearwire chief executive officer. “As our coverage area continues to expand, the Clearwire pc card is ideal for the majority of the population that spends most of their time in their local communities. Utilizing Motorola’s pre-WiMAX OFDM technology coupled with more total spectrum devoted solely to data services in the markets in which we operate than any other carrier in the US enables the Clearwire pc card to deliver a unique user experience.”

The Clearwire pc card expands the company’s product portfolio to provide a personal broadband experience with greater portability through a smaller device, requiring only the power provided by the customer’s laptop or notebook computer. Utilizing Clearwire’s own broadband wireless network, the Clearwire pc card is designed to provide consumers a consistent user experience of up to 1.5 Mbps resulting in a smooth, seamless, robust Internet experience.

The Clearwire pc card is currently available in all Clearwire markets nationwide through Clearwire retail locations, as well with the company’s authorized local retailers and national partners, Best Buy and Circuit City. Customers can also purchase the Clearwire pc card online at www.clearwire.com or by calling 1-888-CLEARWIRE. Service plans for the Clearwire pc card start at $59.99 a month with a pc card lease fee of $6.99 a month.

WiMax Global Push, US Blip!

The WiMax Global push is being tainted by the departure of the Sprint CEO in the US, however there is a lot of weight behind making WiMax work, there are big companies supporting WiMax worldwide. Nokia has agreed to build base stations and has a stake in offering handsets as well. Samsung has also joined the alliance of companies pushing the 4G technology.

Trading around $20, Clearwire has not been a big stock market success. Its shares got a nice lift to $35 when it announced its WiMax alliance with Sprint. But, the shares are off at $21. Clearwire's current debt load is modest at $655 million, but, if it has to go it alone, that will rise. The company's market cap is $3.4 billion.

Sprint's market cap is $51 billion. Its revenue run rate is about $10.5 billion a quarter. Operating income in the June quarter was $316 million. The company's debt load, at $21.7 billion, is fairly heavy.

Sprint and Clearwire are facing the challenge of AT&T (T) buying licenses from Aloha in the 700 MHz frequency covering 196 million people in 281 markets, including 72 of the top 100 metropolitan areas and all of the top 10 markets. The FCC is going to auction off more 700 MHz.spectrum in January. Access to this will provide wireless operators the ability to offer better wireless broadband which is tough competition for WiMax.

Kevin Martin and the FCC have allowed for part of the 700 band to be reserved for open access - which would allow the bandwidth to be used on any device, in any way.

Google has announced that they will be throwing in their bid at the FCC’s $4.6 billion reserve price, but only if the FCC agrees to Google’s expanded demands for open access. Eric Schmidt, Google CEO, says that if the FCC will agree to open applications, open devices, open services, and open networks (conditions outlined in Google’s previous proposal), then Google will play ball.

The auction could net Google a prime piece of spectrum real estate from which to launch their very own wireless broadband network.

Will Google invest in Clearwire?

Sprint and Clearwire can face the competition separately and probably take a severe beating. Or, they can put together one company, Perhaps Intel, Nokia, and Samsung would make strategic investment to help finance building the US WiMax network. Having a single company building instead of two would save hundreds of millions of dollars.

DoCoMo, Acca grab 5 Net firms in WiMAX bid-Nikkei

TOKYO, NTT DoCoMo Inc (9437.T: Quote, Profile, Research), Japan's biggest mobile operator, and ADSL provider Acca Networks Co (3764.Q: Quote, Profile, Research) have signed up five Internet service providers to their WiMAX joint venture in a bid to launch ultra high-speed wireless Internet access, the Nikkei newspaper said on Saturday.

The firms include Nifty Corp (3828.T: Quote, Profile, Research), NEC Biglobe Ltd., So-net Entertainment Corp (3789.T: Quote, Profile, Research), FreeBit Co (3843.T: Quote, Profile, Research) and Asahi Net Inc (3834.T: Quote, Profile, Research), who will take stakes in the venture if DoCoMo and Acca win a WiMAX licence, the business daily said.

WiMAX, or Worldwide Interoperability for Microwave Access, allows high-speed and cheap Internet access and file downloads from laptops, phones or other mobile devices over greater distances than previous technologies.

Japan's telecommunications regulator plans to allocate 2.5 GHz band frequencies to two companies.

The DoCoMo-Acca group faces competition from three other bidders: personal handyphone system service provider Willcom Inc.; a group led by Japan's No. 2 mobile carrier KDDI Corp (9433.T: Quote, Profile, Research); and an alliance between No. 3 operator Softbank Corp (9984.T: Quote, Profile, Research) and eAccess Ltd (9427.T: Quote, Profile, Research) Ltd.

Clearwire Launches Service in Spain

NEW YORK - Wireless Internet service provider Clearwire Corp. said Thursday it launched its Instant Internet, or "Instanet" service in Seville, marking its entry into Spain.

Clearwire (nasdaq: CLWR - news - people ) said its network in Seville covers more than 300,000 households. It employs radio signals using a secure or licensed spectrum, which are transmitted from a tower to a small wireless modem that connects users' computers to the Internet.

Spain follows Ireland and Belgium among European countries in which Clearwire has launched its service.

Shares of Kirkland, Wash.-based Clearwire rose 47 cents, or 2 percent, to $23.46. The company was founded by cell phone pioneer Craig McCaw and went public in March.

ICO and Clearwire to Conduct Mobile Video Trial

Initiative Will Focus on Feasibility of Delivering Mobile Video From Satellite as Part of Mobile Triple Play

RESTON, Va. & KIRKLAND, Wash.--(BUSINESS WIRE)--ICO Global Communications (Holdings) Limited (NASDAQ:ICOG) and Clearwire Corporation (NASDAQ:CLWR) today announced a joint agreement to collaborate on one of the industry’s first mobile video trials. The collaborative effort is at the forefront of the intersection between two-way wireless broadband and satellite connectivity, and will focus on increasing the value and cost effectiveness of delivering an advanced interactive mobile video service to consumers. In addition to testing mobile video broadcast, the trial will also examine the feasibility of utilizing Clearwire’s 2.5 GHz spectrum and ICO’s 2.0 GHz spectrum more efficiently. The ICO trial with Clearwire is expected to begin in early 2008 in Raleigh, North Carolina, and ICO is also planning a similar trial in Las Vegas, Nevada.

“Our next generation wireless personal broadband networks are built to deliver data, voice and video over a single network,” said Scott Richardson, chief strategy officer for Clearwire. “Working with ICO to trial an interactive mobile video element that can potentially enhance our service offering not only in areas where we don’t intend to build our own network, but that can also potentially enhance the use of infrastructure and spectrum where our coverage overlaps, makes a lot of sense.”

“Mobile two-way video, advanced interactive navigation, plus emergency calling and messaging becomes an even more compelling value proposition when integrated with a wireless broadband network such as Clearwire’s,” added Tim Bryan, chief executive officer for ICO. “We are well positioned to be the first provider of next-generation mobile satellite services, and we have a clearly differentiated offering by leveraging integrated satellite and terrestrial networks to deliver advanced consumer mobility services.”

For the trial, ICO will integrate its Mobile Interactive Media (MIM) suite of services with the Clearwire broadband network. ICO MIM is a converged mobile media service which delivers a wide variety of consumer entertainment and communications services, all based on ICO’s next-generation satellite and terrestrial wireless communication capabilities. For the trial, ICO MIM will provide multiple channels of high-quality mobile video to large-screen user devices. Alcatel-Lucent has been chosen to supply the system architecture and design based on mobile multimedia DVB-SH open standard, and Hughes Network Systems has been tapped to provide the device as well as the interactive elements based upon the proven GMR standard.

About Clearwire

Clearwire, founded in October 2003 by telecom pioneer Craig O. McCaw, is a provider of simple, fast, portable and reliable wireless high-speed Internet service. Clearwire customers connect to the Internet using licensed spectrum, thus eliminating the confines of traditional cable or phone lines. Headquartered in Kirkland, Wash., the company launched its first market in August 2004 and now offers service in 16 states across the U.S. as well as in Europe and Mexico. For more information, visit www.clearwire.com.

About ICO

ICO Global Communications (Holdings) Limited is a next-generation satellite communications company based in Reston, Virginia. ICO is developing an advanced hybrid system, combining both satellite and terrestrial communications capabilities, in order to offer wireless voice, data, video, and Internet services on mobile and portable devices. For more information, visit www.ico.com.

Why Is Wall Street Punishing Clearwire?

Posted by Richard Martin, Aug 31, 2007 05:54 PM

It would be unethical of me to offer stock tips in this space, so I'll just phrase this as a question: Why is Wall Street hammering Clearwire Corp.? After reaching a high of $33.30 on July 19th, the share price for the WiMax network startup has declined 37%. And on Tuesday the stock dropped 7% "on no news whatsoever," as The Motley Fool put it.

Actually, there was news that day related to Clearwire, and it was good. EarthLink announced that it is slashing half its workforce and effectively abandoning the municipal Wi-Fi market. Since EarthLink was the highest-profile company contracting to build citywide wireless networks, its exit has thrown the whole future of muni Wi-Fi into doubt.

How's that good for Clearwire? Well let's number the ways.

1. The longer cities wait on building Wi-Fi networks, the more likely they are to just wait forget about Wi-Fi (which is essentially a short-range networking technology) altogether and focus on WiMax. It's amazing, says Carmi Levy, senior vice president for strategic consulting at AR Communications, that "not one person in these city IT departments was asking 'Gee, should we be waiting for WiMax?'"

2. The pullback in muni Wi-Fi doesn't eliminate the demand for widespread wireless networks; it underlines the superior qualities of mobile WiMax systems of the sort that Clearwire is building. WiMax "changes the way people use the laptop," Sriram Viswanathan, who heads up Intel's WiMax strategy, told Reuters earlier this week. Ubiquitous, pervasive high-speed wireless access is still a desirable goal and a workable business model. It's just going to take a bit longer than expected, till network builders like Clearwire (which now says it covers 43 U.S. markets) and Sprint Nextel get their systems fully deployed.

3. EarthLink will almost certainly seek a buyer for its existing Wi-Fi networks, at a bargain price. The value of those systems is not primarily in the equipment, or even in the subscribers: it's in the mounting rights on city light posts and tall buildings. "Imagine a scenario where Clearwire or Sprint built a Wi-Fi underlayment as the entrance ramp to the mobile Wimax network," Ron Sege, CEO of Wi-Fi gear vendor Tropos Networks, told me this week. "You won't need the 40 or 50 cells per square mile that are common in Wi-Fi networks, but you'll need at least 15 or 20 in the WiMax world. In that case those mounting rights to streetlamps become valuable, and [an EarthLink fire sale] could be very opportune."

It's really not that hard to figure why Wall Street is fleeing from Clearwire (Sprint, which also saw its stock dip sharply on Tuesday, is essentially flat for the week). In the wake of debacles like the Google-EarthLink San Francisco network project (which collapsed this week), anything that has the words "wireless" and "municipal" and "networks" in the same sentence looks like a loser. It's the EarthLink contagion. I'm predicting now that it won't last -- but you didn't hear me say that.

Samsung to build mobile Internet network in New York

SEOUL, Aug. 27 (Yonhap) -- Samsung Electronics Co. said Monday that it will build a mobile Internet network in New York to expand its homegrown technology in the United States, one of the world's largest communications markets.

혻 혻 "Recently, we received a request from Sprint Nextel Corp. for the establishment of a WiBro network in New York," Choi Gee-sung, head of Samsung's telecommunications business, told reporters at the 4G Forum currently underway in central Seoul. However, he didn't give details on timetables.

혻혻 WiBro, one of the major 4G communications standards, is an improved version of WiMax that enables high-speed Internet connectivity even when a user is in motion. WiMax refers to a wireless Internet technology developed by the world's largest chipmaker Intel Corp.

혻혻 Samsung, a global tech giant, and other Korean companies hold related core technologies.

혻 혻 In August 2006, Samsung signed a deal with Sprint Nextel, Motorola Inc. and Intel to cooperate in developing and commercializing WiBro in the U.S., one of the world's largest communications markets.

혻혻 It has built the WiBro network in five major cities and regions there including Washington D.C., Baltimore, Philadelphia and Boston, Samsung officials said.

혻혻 Samsung expects that the number of its WiBro network users in the U.S. will exceed 100 million next year and it will grow to 140 million in 2009 and 170 million in 2010, respectively.

혻 혻 "Within three or four years, we will be able to generate profits from our network business including WiBro," Choi said, adding his company will raise investment for its network business from 120 billion won (US$128 million) a year to 160 billion going forward.

혻혻 Meanwhile, Samsung has held the 4G Forum every year since 2003, aimed at facilitating the emergence of new communications markets and strengthening its market superiority in the sector. This year's event kicked off Monday for a two-day run with around 130 experts from academia, business, and the governments of 26 countries expected to be on hand.

Clearwire's WiMAX-Lite

Imagine having Net access almost anywhere. Clearwire has a new service that comes close to providing just that

by Jay Greene

If you're fortysomething or older, like me, you probably remember the thrill of getting your first home dial-up connection to the Net. Then came broadband, which was pure magic. And then Wi-Fi, which delivered fast Web access throughout the home, as well as in cafés and airport lounges. Now I'm completely spoiled. I want my Internet wherever I happen to be.

An emerging technology called WiMAX aims to indulge that craving. It will eventually provide Web browsing speeds many times faster than Wi-Fi and a gigantic range that will keep you permanently connected to the Net—at home, in your car, in a city park, or on the beach. The new WiMAX standard won't be ready for prime time until early next year. But you can get a taste of what's coming if you sign up with Clearwire (CLWR), a Bellevue (Wash.) startup from Craig McCaw that's available in 43 markets including Seattle, where I live. This WiMAX-lite service is disappointing in some ways. But Clearwire will start upgrading subscribers to the real thing next year, and it is also planning to roll out a nationwide WiMAX network in a joint venture with Sprint Nextel (S). If it addresses a few early glitches, it's bound to have tremendous appeal.

Location, Location, Location

To use Clearwire's current service (ranging from $30 to $50 a month), you just set up a nine-inch-high modem and plug it into the Ethernet jack on your PC. This one box is all you need for full Net access—say goodbye to DSL or cable-modem charges and wires—and it will work anywhere in the city, as long as you have a power outlet for the modem. No more searching for a Wi-Fi hotspot: The signals are everywhere.

Well, almost everywhere. In this proto-WiMAX system, there are dark spots, and my home at the bottom of a gully, surrounded by hills, trees, and other houses, happens to be in one. A row of five lights on top of the modem indicates signal strength, and the best I've ever gotten at home is two out of five. Two lights turns out to be fine for e-mailing and other basic tasks. But video and graphics-rich Web sites are sluggish, so check with Clearwire before making a commitment.

Things picked up when I tested the technology at work on the 19th floor of a Seattle office building. I got five lights out of five, and the experience was just like surfing the Web on my high-speed cable connection at home. Out of the dark zone, Clearwire was fast enough for me to catch episodes of the British car show Top Gear on YouTube (GOOG) and listen to a buddy's guitar music on MySpace (NWS). And I had no problem using Clearwire's voice-over-Internet phone service, which carries an additional monthly charge. There has been some subscriber grumbling about Clearwire's restricting network speed for heavy users during peak hours, but I haven't had that problem.

On the Road

The next step was to take Clearwire around town. This is a bit of a nuisance because you have to lug the modem with you and find a power outlet—or purchase a separate car adapter and a 12-oz. battery pack.

I didn't bother with that. Instead, I took my gear to a nearby Starbucks, plugged it in, and enjoyed surfing the Web without having to pay the usual Wi-Fi fee. I did have to tweak the settings on my laptop to turn off the radio that receives wireless signals so it would default to the Clearwire service—but that's not a big deal. And in the next few months, Clearwire will sell a card that slips into a laptop to receive its signal, so you won't need to tote the modem.

Clearwire isn't all it can be, especially if you live in a dark zone. But for folks who want to get out from under their cable or telephone company, it offers a dependable alternative that will get much better when real WiMAX finally arrives.