Home > Mobile, WiMAX, Wireless > Another day and another question about Clearwire future!

Another day and another question about Clearwire future!


Here we go again; another day and another question about Clearwire future! They need money again and so far Sprint was the only main source of cash, but probably not for long. Sprint, which merged its wireless broadband unit with Clearwire in 2008, invested $1.2 billion into the company in late 2009. Credit Suisse analyst Jonathan Chaplin estimates Clearwire needs $4 billion to cover 200 million people in the U.S. by the end of 2011, up from the 120 million people it expects to cover by the end of this year. With limitations in the capital market, there are not many choices for Clearwire. While Sprint board is already divided on the issue of future capital injection, some people speculating the need to bring another operator as a major investor; like T-Mobile USA, into the mix to inject some capital and reduce the pressure on Sprint. The logic is sharing the network with Sprint could cut the cost for both parties, T-Mobile can benefit from this collaboration since they do not have a clear plan for their 4G roll-out.

But it is not that simple. T-Mobile as a GSM/UMTS based operator and in line with other T-Mobile operations around the world, needs to follow LTE path for the sake of its own integrity. While Sprint is struggling with its WiMAX launch because of limited available handsets, this issue will be even more problematic for T-Mobile, since most of the GSM world players have already chosen LTE as their migration path. Therefore, there will be no or very limited market for a GSM/UMTS/WiMAX phone.

Bottom line, it is decision time for Clearwire. They should come out of cash burning mode and create a real revenue to survive in this market.

Advertisements
Categories: Mobile, WiMAX, Wireless Tags: , , ,
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: