Clearwire losses double as costs rise

US 4G network operator Clearwire more than doubled its operating loss in 2Q10, as network costs quadrupled to $260 million (€196 million) during the period.
 
Losses of $520 million were 116% higher than 2Q09, as expenditure jumped from $305 million to $643 million this year on the back of increased cost of goods and services related to 4G network rollout, and a $79 million charge relating to inventory changes.
 
The losses offset a 93% increase in revenues during 2Q to $122.5 million, as the firm almost doubled its subscriber base to 1.7 million.
 
That growth prompted Clearwire to raise its full-year customer target to 3 million, however analysts said they would prefer to see the telco sign up fewer wholesale customers and expressed disappointment the firm didn’t translate subscriber growth into higher revenues, Reuters reported.
 
The firm’s customer base comprised 940,000 retail and 752,000 wholesale subscribers by end 2Q.
 
Clearwire today also outlined plans to trial LTE technologies with Huawei and Samsung as it seeks to future proof its network, CTO John Saw said.