Clearwire announced it is significantly slowing down its network buildout. It's estimated the company is pulling back from a prior estimate of 30.5 million POPs to about 6 million POPs. The 30.5 million POPs is the number Clearwire expected to build out as part of its previous agreement with Sprint. The move dramatically reduces the company's capex but will likely affect its valuation going forward, noted Pali Research. Of course, plans could change if another deal with Sprint comes to fruition.
Clearwire also reported some preliminary results for 2007, saying it ended the year with 394,000 subscribers and $151 million in revenue. But the company didn't report its net loss. During the fourth quarter, the company added 46,000 customers, which was 25 percent below estimates from Pali Research.
For more about Clearwire's network buildout slowdown:
- read this article from RCR Wireless News
- take a look at Pali Research's blog