The pros and cons of Clearwire

It’s time for Clearwire’s chefs to tell us what’s cooking. Half baked turkeys won’t do. Or, if the chefs don’t want to disclose what’s cooking, then they should take their company private, and into the hinterlands and boil broadband eggs for people who need it.

With service available in Baltimore and Portland going well today and with many more cities rolling out in 2009 I believe Clearwire will succeed by being first to market and generate a buzz about 4G service. Fact is over half the comments posted here are from Verizon and AT&T employees that want to bash Sprint at every turn. America loves a comeback story and Sprint is an iconic American company that is under good leadership with Dan Hesse so I expect things to turn around for them. It may not be quick as the hole was dug deep by the Gary Forsee leadership team but eventually Sprint will be back on top. Maybe not in total subscribers but as the data and solutions leader and the best choice for Business customers in the US.

A good network is only half the equation, services are the other half. If Sprint/Nextel provided a complete communication service so that businesses could get rid of their land lines and PBX systems, there could be a solid ROI. Businesses do not care about the technology, just the results. If Wimax is not the end all technology, then Sprint has not bets its future on it, but on the services and value that it can provide.

I really think we all know the hype is for the investors. If Sprint can't stop the bleeding of subscribers nothing is going to make them very appealing. from landline to wireless I find them to be one of the hardest carriers to conduct business with. no-one takes ownership of problems, and now we can expect to see 20 more call centers close to cut operating expenses. outsourcing has been the root of the whole problem. The sprint Nextel merger has been a disaster and should have never happened. obviously competitors feel the same way as there is no chance of any other mobile operators purchasing Sprint or even Nextel, why should VZW or anyone consider it? all of the subscribers are already being won by them.(hell they are taking over Sprint Nextels book and they didn't have to aquire any liabilities) I do not expect much better from the clearwire venture. I wish they had left Nextel alone.

I wish Clearwire success as well. But how much success will they have in 2009 and beyond will be up to the economic state of the US. And it's not looking good at all. The recession is currently feeding on itself and will continue to do so as long as American jobs are lost to cheap foreign labor by way of outsourcing and insourcing.

Sprint is the "poster child" for failed outsourcing and insourcing efforts.

American companies can't have it both ways; paying customers (Americans) and continue to send those same American's jobs overseas.

Sprint has lost over a million subs every quarter for 5-6 consecutive quarters. You have to ask yourself what problem do they have that could not be fixed in a week? A month? A quarter?

Answer: Culture

SPRINT CLAIMED THEY KNEW IT ALL. THEY WOULD BECOME THE #1 MOBILE OPERATOR IN THE U.S.

I would think that anyone and everyone who receives this newsletter would by default, have a somewhat vested interest our industry as a whole... and to that end, would be rooting for any potential national deployment activity regardless of branding or technology as we struggle with this tough economic environment. Clearwire is trying to move the ball forward in the 4G realm and whether or not you believe WiMAX or LTE (or both) are the future of wireless, I applaud Clearwire for their efforts and hope to benefit at some level from the "trickle down" economy that a new national wireless build could potentially have for us all...

wow, theres a sprint employee if i ever heard one. you know verizon is going to take the cake.

It's Intel versus Qualcomm in wireless. It's like Mothra trying to fight Godzilla. I can hear Godzilla's echoing victory roar already.

I disagree with the assertion that pricing plans are competitive with cable and DSL. Here in Portland, the pricing for "3 Mbps" service is $30 plus $5 modem rental. I have 3 Mbps in quotes because at at strip mall store kiosk, the demo system configured with 6 Mbps service delivered only 0.9 Mbps on downlink and 0.15 Mbps on uplink (according to speedtest.net). A rep explained that Clearwire sites are colocated with Sprint's cell sites and that "they're adding new cellsites every day". Yeah, right. The problem I see is that ten years into the PCS build-out, Sprint's suburban coverage is still crappy and WiMAX coverage should be even worse due to the higher attenuation caused by higher operating frequency (2.5 GHz versus 1.9 GHz).

I'm thinking that the monthly fee needs to come way down to make up for the significantly weaker performance relative to competitors.

Here's the piece I see as missing: Yes, Clearwire has a lot of tech-savvy $$$ flowing in from Intel, Google, et. al. The problem: not a single one of them knows diddly about radio. They have (most) all of the other bits in place, but in the end it's only going to be as good as the radio network design. I'm not sure that putting that expertise burden entirely on Sprint is the best play. So how does this end differently than Muni WiFi?

No one has brought up the fact that the new Clearwire has a spectrum footprint larger than any of the other cell carriers... typically in excess of 100mhz in each market, in some upwards of 190mhz... this is substantial capacity and the technology is delivering on it promise, making the spectrum holding that much more valuable......

These negative comments are a prime example of reality not catching up to perseption. 18 months ago, Sprint was falling apart internally. Customer Service was an afterthought and there was no executive leadership. But since Hesse took over Customer Service has improved dramatically and they have created a culture than values the customer and is working hard to be the best carrier it can be. So to base an opinion on the Sprint experience from 2-3 years ago and say it is the same to today is just false! It'll probably take another year to turn the ship around but Sprint has the leaders, the network and the know-how to do it. I would think more of you would be pulling for a Sprint resurrection instead of tearing it down. It makes no sense unless you work for the competition.

How many years does it take to turn a ship around?

Sprint will turn around only when all of the Nextel subs have left.

I think that AT&T and Verizon have clearly shown that they are losers in the data market. How many times over the past years they have pulled back on their advertising of data. Data is clearly the wave of the future and clearly Verizon and AT&T are not focused on data as it relates to businesses. It's all about telephones to them and their complaint ratio clearly supports that notion.

Everyone can bellyache and moan about the lack of direction from the Clearwire crew but much of the problem is not Clearwire's issue. In the current state of the economy I'm sure that many of the Clearwire partners are second guessing there investment. However, I think that the major players (intel, google, comcast, sprint) will make major product pushes this year that will convince the public that Clearwire is here to stay.

How many years does it take? Well it surely will take longer than the 12 months Dan Hesse has been in charge. He walked into a mess and has done a terrific job so far in getting Sprint heading in the right direction. It probably will take another year to get them back where they want to be. Which is the leader for data and top carrier for Business customers and high end individuals and families. Clearwire is another example of Sprint's focus on data as data is the future for wireless.

As an investor, I want to know what I’m buying in a stock. Clearwire is not clear. So management needs to tell us the basic facts: 2009 and 2010 network rollout plan and markets, covered pops, capex, uptake rates in Baltimore and Portland, APRUs, churn rates, fixed vs. mobile subscribers, and CPE costs.

They also need to tell us why their strategic investors are writing down their investments in Clearwire. And, explain what they are thinking and doing about WiMax vs. LTE or other technologies. And explain how they will deal with WiMax suppliers, in the wake of Nokia’s decision to drop its WiMax tablet. And clearly explain their competitive advantage now and in the near future.

As detective Joe Friday always said, “Just the facts, just the facts” …no hype, no spin, and no-nonsense…no howling, no yelping ,and no barking. If the facts make sense, I’ll buy the stock. If the facts don’t make sense, I’ll ignore the investment, or short it. Please tell me what I’m buying.

Here is the truth about Clearwire and their new Wimax service. "Build it and they will come." The system rollouts in Baltimore and Portland have been a success and Wimax wireless broadband service works. Hands down.

Now it is just a question of how fast Clearwire can expand its Wimax system and take on new customers. Cable, and Fiber Optics are going bye bye in the future because its to expensive to keep digging holes and laying land lines. Wireless broadband is the future and Clearwire is leading the charge.

Wow, I am shocked to see that the majority of the people responding to this piece are actually defending Clearwire. I would like to agree with a person a few postings above me who stated the obvious. Anyone on this website reading these postings should care about Clearwire's success because any success at all, regardless of LTE or WiMax, Sprint or AT & T, Intel or Qualcomm or whomever, ANY progress is good progress. So, I say way to go to Clearwire for sticking their necks out to try something new and bring wireless broadband to the masses.

The only thing that concerns me is the state of the economy. With news out last week from Business Week reporting that the Obama administration is looking to put some of that bailout money towards "Wireless broadband for all", perhaps Ben Wolff (Clearwire CEO) should stick Clearwire's cap out for a little bit of that bailout money. Certainly wouldn't hurt, would it?

S will turn around soon because of Kindel, Boost,Pre, Wimax ,Niagara, Google phone and Streamlining . Clearwire will install LTE also when it is ready. Saving expense for S.

I believe someone mentioned culture as Sprint's problem. I think that comment is accurate for for Clearwire as well. Clearwire is commonly known as a 'company killer' amongst its current and former vendors. It seems that the executive team brought the McCaw/Voicestream/T-mobile culture with them. Anytime a company treats one part of the three legged stool (customers, employees & vendors) poorly, execution and ultimately performance will suffer. Lack of execution will lead to additional staff turnover and less qualified candidates filling the open positions. The company works its way into a vicious cycle of poor performance and inconsistent execution. Throw in the famous Sprint bureaucracy and you have a winning formula for success. This situation will not be corrected quickly or easily, short of a Chapter 7 filing.

I pay $17 per month for Verizon DSL in the greater Seattle market. Low bandwidth, but plenty fast for everyday needs. The problem is I still need a landline, but even with that extra cost, the overall cost is still less than coax.

At the same time, would be reluctant to give up a landline because it's the only tried and true product for call delivery during extended power outages.

By the way, my cable bill is about $17 too, for Comcasts most basic service offering. I am cheap all the way around!

And you must be Clearwire or Sprint employee!

I used Clearwire while on temporary assignment in Central California. I was very pleased with the service and prospects of portability. However, the portability did not apply to my next two markets (Mid-West and East coast). Even though the footprint is lacking, I have faith they will eventually provide a ubiquitous service.

Or someone else will provide ubiquitous service; he who conquers the last mile will win.

Franchise the rural areas. McDonalds is a good example of the possibilities.

Google, Sprint, Comcast, Intel, Bright House, Time Warner. Its hard to believe these big players would take part in something that would fail before it even started. I think Clearwire is working smart in the trenches of a crappy economy. The first thing I would cut in this economy is my home phone. I use my cell phone all day and pay for a home phone and dsl. $59.78 is what I pay combined just so I can use the internet. I cant wait for Clearwire in Atlanta.

Wimax is rolling out in Atlanta as we speak, or talk, or blog.

It isn't a question of who gets the technology deployed first, but who is standing when the smoke is cleared. Based on how Sprint handled it's customer base and it's (lack of) customer service, I don't see how they can succeed.
Unless they change their corperate philosophy from "profits first" to "customer first" they won't even be able to successfully open a jar of jelly.
~007

And another huge player enters the field...Cisco. Clearwire's partnership with Cisco only adds to the team of all-stars leading up this venture. Google, Time Warner, Bright House, Intel, Sprint.....It's like watching an all-star game. Credibility can be the factor that leads to success for Clearwire.

Word on the wireless street is that Clearwires speed is 10% of what LTE will be. Is this true and why?

This is basically true. WiMAX (IEEE 802.16 standard) in its consumer-friendly configuration is capable of about 8 Mbit/s. It is capable of handling speeds close to LTE in point-to-point solutions, but would not be suitable for the general public. Nobody wants to carry around a large directional antenna in their pocket. LTE (3GPP R8 standard) is an entirely different radio technology that - through compression and spectral efficiencies can provide bandwidth of 50 to 100 Mbits/s. It is probably worth noting that the higher speeds were achieved in point-to-point tests. That being said, I would not expect to see that kind of bandwidth available to consumers when LTE rolls out. The thing that most people forget is the backhaul component of the equation. The amount of backhaul required to an LTE cellsite to provide that kind of wireless throughput to the general public would be very expensive for a network operator. To make it even remotely cost effective, those LTE operators will probably have to follow Clearwire's lead in running most of their backhaul network over microwave. We'll never know for sure until somebody puts up an LTE network for the general public.

Something to think about: You put a Mustang and a GT40 on the same bumpy mountain road. Yes, they are both faster than your father's Oldsmobile from point A to point B, but the two will probably not be far apart at the end. The only way to get the real performance benefit from the GT40 is to build a nice smooth road. That is expensive.

As a long time member in the wireless industry network build staff, I found the comments on this article most interesting. Clearwire is many things tenuously strung together and there lies the confusion. They have license problems which is sort of like having a disease of the nervous system and trying to run a marathon. Their relationship with vendors is already a loaded gun, having made plans then pulled the plug over and over. They repost jobs on the job boards everyday months on end and apparently hire no one. They do seem to be hyping the investors and we know its been done before since investors don't really know anything about how these networks actually work. Somebody sells them an idea, they dish out the money, then realize some basic fundamental flaw when its much too late.
And the Sprint Nextel merger! If they had shown any engineer thier basic idea before they did that, it would never have happened. And they gave the purse strings to Sprint. Why always give the bank account to the guys that lost their shirts? As much as I would like to think Clearwire has a shot just because it would mean jobs, I don't see anything I would put money into. I see a company that will limp along for years and someday be another Nextel having developed a niche market when the competition is taking over the world.

FILED WITH THE BETTER BUSINESS BUREAU ON AUGUST 10, 2009 AT 9:26 AM

Thank you for using the Better Business Bureau's Online Complaint System.
Your complaint has been assigned case # 22213221.
A confirmation will be emailed to : Herbeash.com
Please print a copy of this for your records.

Filed on : August 10 2009

Filed by :
Herb Eash

Filed against :
Clearwire Corporate
5808 Lake Washington Blvd NE Ste 300
Kirkland WA 98033

Complaint Description:
Sales representative said that I'd have a fast and reliable service using their internet service. All I got was choppy and long wait times. I told them that I was a Webmaster and needed the fast service to view videos, music, and other stuff that I would need a fast connection. I went through their service dept., technical dept., and even had a tech come out and try to fix my service. The tech was baffled of why I was getting only upto 3 bars on my modem. They could not fix the problem and since I was on a contract I could not break it. Two weeks ago I called in and asked the service person what type of service would give me better speeds so that my videos would not be choppy and give me no wait times. They put me on the unlimited service for $11.13 more. After performing all the shut downs and restarts of my computers and modem so that the service could take affect I still had slow and choppy service. I called and spoke to clearwire Technical Support and they did a speed test with me 513kbps upload and 4.38mbps download. the tech could not fix these slow speeds. I think I've done enough and wasted more time then I should have with Clearwire!

Your Desired Resolution:
Reimbursement of the following payments made to clearwire. 08/07/09 $11.13 07/31/09 $35.37 and No Contract Cancelation Fee

This case will be reviewed by a complaint specialist at the Better Business Bureau, and then forwarded to the business for their response. It is our policy to allow the business 10 working days to respond to your complaint. You will be notified when the business has responded.