Free Newsletter
Old Clearwire stockholders say OK to new Clearwire
Clearwire stockholders have waved goodbye to the old Clearwire and hello to a new Clearwire by approving a combination with Sprint Nextel's WiMAX business and a $3.2 billion investment from cable operators Comcast, Time Warner Cable and Bright House Networks along with Google and Intel.
Following a unanimous recommendation from Clearwire's board of directors, the stockholders voted for a "new" Clearwire which, under Sprint's direction, will develop a nationwide mobile WiMAX network.
The deal, which Clearwire CEO Benjamin Wolff in a news release called a "transformative step enabling an entirely new mobile Internet experience," already cleared regulatory hurdles, including getting FCC approval. Barring some unforeseen circumstance, everything is expected to close and the new company will be building WiMAX networks by the end of the year.
For more:
- see this news release
Related articles:
New Sprint-Clearwire deal a shot in the arm for mobile WiMAX
FCC approves Sprint-Clearwire WiMAX combo
Comments
Posted by wimaxjet | November 20, 2008 - 5:13pm
Excellent news for the WiMAX wireless technology. One thing I don't understand is why the Clearwire stocks went down so much like 32% after the announcement.
WiMAXED.com
Posted by Chip | November 21, 2008 - 9:24am
The stock went down because WiMAX 802.16e is a niche technology that faces severe competition from HSPA, EVDO, and eventually LTE. WiMax 802.16e scale will be limited, affecting competitive prices for its chipsets versus mentioned competitors. And that could affect the range and number of end user product offerings. Other issues are raising long-term debt – project finance- for capex in a credit market that looks like Antarctica. Limited network build out will constrain coverage. When you don't have coverage, you don't have subscribers. Roaming is an issue as well. Plus, Sprint is a troubled company with major distractions, including a heavy debt load, big churn with over one million subscribers fleeing per quarter, strategic issues with iDEN, falling worker morale, operating profit losses and stock under severe pressure. There are probably some more issues, which I missed. Strategically, WiMax 802.16e is long shot in a developed, highly competitive market like the U.S. But in developing countries with green-fields or limited alternative competition, it is good technology and business opportunity.
Posted by wimaxjet | November 21, 2008 - 11:14am
Chip, thank you for your comment. I was looking into buying some stock from Clearwire but I was surprised by the direction of the stocks yesterday. Today they are up by 20-30 cents but yesterday it took a pretty good dive.
Click here to get the FierceWireless email newsletter for FREE!
Comments (3) | Post a comment