Report: Clearwire ending WiMAX retail strategy

Clearwire (NASDAQ:CLWR) is reportedly ending its retail expansion to conserve cash and enable it to focus on building out its mobile WiMAX network.

According to Bloomberg, Clearwire, which wholesales services to its majority owner Sprint Nextel (NYSE:S) and cable partners Time Warner and Comcast, will continue operating its 140 existing retail stores for the time being.

The move isn't a total surprise given the fact that Clearwire suspended retail operations in new markets such as Denver and Miami. In addition, it's retail strategy has created tension with Sprint since they were competing for the same customers. Clearwire's partners have also been critical of the operator's slower rollout strategy in larger markets, especially now that Verizon Wireless (NYSE:VZ) is aggressively introducing LTE across the U.S.

Clearwire's cash woes are well known. The operator has raised $1.325 billion in bonds and exchangeable notes but still needs additional capital to roll out more markets. Clearwire has cash to last through the end of 2011. The company is reportedly nearing a deal with T-Mobile USA to sell some of its spectrum assets.

Clearwire, which releases fourth-quarter results Feb. 17, isn't commenting on the report.

For more:
- see this Bloomberg article
- see this WSJ article (sub. req.)

Related Articles:
T-Mobile may hold Clearwire's future in its hands
Report: Interest in Clearwire's spectrum dwindling
Clearwire still pursuing spectrum sale, equity financing
Report: Sprint pushed for Clearwire-T-Mobile wholesale deal
Clearwire plans to raise $1.1B in debt offering
Sprint, Clearwire bicker over wholesale revenues from WiMAX smartphones
Clearwire open to funding from T-Mobile USA
Hesse attempts to dispel concerns over Clearwire's future
Clearwire cuts workforce, delays retail launches amid funding uncertainty
Report: Clearwire hopes to raise $5B by auctioning 40 MHz of spectrum

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceWireless!

The Wireless industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceWireless as their must-read source for the latest news, analysis and data on this increasingly competitive marketplace. Sign up today to get wireless news and updates delivered to your inbox and read on the go.