Hasta La Gadget!

The purchase of a controlling stake in Sprint’s business here in the United States has become a bit of a circus when it comes to companies stepping in with complaints here in the spring of 2013. The plan was first tipped back in October of 2012 and confirmed that same month with a 70% stake in Sprint being agreed upon for $20.1 billion dollars, purchased by Japan-based mobile carrier Softbank. Since that announcement, we’ve seen protests from AT&T, the Dish Network, and now the real deal US Department of Justice – it appears that there are going to be some delays, needless to say.

Two new news bits are appearing this week in regards to this situation, the first being Dish “holding off” on their legal filing against the Softbank/Sprint merger. Before this week it was apparent that Dish was having none of the deal between the two based largely on their desire to purchase a controlling stake in the mobile company known as Clearwire here in the USA. If the deal went through, Sprint would be able to purchase Clearwire for a pre-discussed price – if the deal did not go through, Sprint would be unable to purchase Clearwire and the price Dish offered up for the business would likely go through. They’ve decided to cut their ties with the whole situation, noting with the FCC that they simply will not be participating in the next round of filings in the regulatory review – that’s it!

That note was according to Reuters while the following bit comes from ZDNet where they’ve attained details surrounding a brand new filing as made public by the DOJ. When the Department of Justice steps in on your business deal, you’ve usually got problems. In this case, it appears that, according to Sprint speaking with ZDNet, “this is a routine request.”

It would appear also that Sprint maintains that they’ll be completing the deal with Softbank by mid-2013 while their purchase of Clearwire has had no updated statuses – so we must assume that they’re good to go as well. The Department of Justice’s letter made clear that the DOJ, the Department of Homeland Security, and the FBI are all “currently” reviewing the Softbank deal for possible issues in national security, law enforcement, and public safety – and they’re just not done yet.

So hang tight, folks, as this deal continues to see as much or more scrutiny than it needs before it gets done (or fizzles.) Have a peek a the timeline below to follow this epic journey back to its source as well!

Dish pulls out while DOJ steps in on Softbank/Sprint merger is written by Chris Burns & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

This week the folks at Dish Network have made it clear that they’re going to go hardcore with their business tactics when it comes to attaining Clearwire – their methods including hitting the competition where it hurts: Sprint’s merger with Softbank. Several months ago Softbank made a bid to attain US-based Sprint while Sprint made a bid to attain Clearwire, their ability to purchase Clearwire being based on they themselves being purchased by Softbank. Because Dish Network sees Softbank’s acquisition of Sprint as contingent on Sprint’s future purchase of Clearwire, they’ve filed for the whole stack of cards to come tumbling down.

A regulatory filing has been filed this week by Dish Network that they hope will ultimately leave Sprint on its own without the cash to purchase Clearwire, leaving them able to do so themselves. The following fact list should make this situation rather clear to you – or to the FCC – or both! Have a peek at how this is all about to go down – these are in chronological order, mind you:

1. Sprint owns 50% of Clearwire (and has since before these dealings started last year).

2. Softbank enters into agreement to purchase Sprint (a controlling interest, that is, 70% of the company) for $20.1bn USD. This deal remains under consideration by the FCC to this day.

3. Sprint offers Clearwire $2.90 USD a share for all remaining shares ($2.1bn USD contingent on Softbank deal going through)

4. Softbank limits Sprint’s bid on Clearwire to $2.97 a share ($2.2bn total) and Clearwire accepts. (December 14th, 2012) NOTE: Bloomberg reports here now on January 17th, 2013, that the following is true: “While it has made no decision to reconsider Sprint’s offer, Clearwire said it plans to talk to Dish, which is led by Chairman Charlie Ergen, and will keep its options open by not drawing on financing offered by Sprint.”

5. According to CNET, Dish Network makes an unsolicited bid of $3.30 USD a share for the stocks they’ve just agreed to sell to Sprint, (this being the same 50% of Clearwire not yet owned by Sprint), this totaling $5.15bn USD. Clearwire states that it is “severely limited by its current contractual obligations.” (January 8th, 2013)

6. Dish initiates regulatory filing with FCC that you can access at the FCC right now with a big fat “REQUEST TO HOLD PROCEEDING IN ABEYANCE” neat the head:

“DISH Network L.L.C. (“DISH”) requests that the above-captioned proceeding, for which petitions to deny are currently due January 28, 2013, be held in abeyance, and that the “shot clock” in this proceeding be paused, until the resolution of significant unresolved contingencies concerning Sprint Nextel Corporation’s (“Sprint”) offer to acquire all of Clearwire Corporation (“Clearwire”). In this proceeding, Sprint seeks not only the authority to be acquired by SoftBank Corporation (“SoftBank”); it also requests authority to acquire the stock of Clearwire that it does not already own, as well as de facto control over Clearwire.

But Sprint’s acquisition of control over Clearwire is subject to, among other things, a vote of the non-Sprint shareholders in the face of a higher value offer made by DISH and Clearwire’s response to DISH’s offer. These contingencies make SoftBank’s and Sprint’s applications unripe for consideration.” – Dish Network

They add the following – and a whole lot more that you can read on your own if you wish – including reference to “the Eagle River purchase.” Eagle River is the group from which whoever ends up purchasing the remaining shares of Clearwire will be buying them from, clean and simple. Also included is a reference to “Crest”, this being Crest Financial, a minority stakeholder in Clearwire and one of two groups seeking the FCC’s reconsideration in approving Sprint’s purchase of the remaining stocks in Clearwire (the other being Dish). This is Dish Network’s case:

“Moreover, whether the Eagle River purchase gave Sprint de facto control (as Crest alleges) or not (as Clearwire does), there is no doubt that it facilitates the acceptance of Sprint’s offer to buy the rest of Clearwire. First things first: the Commission should evaluate the propriety of the cursory treatment received by the Eagle River purchase before it takes up the larger SoftBank-Sprint transaction. ” – Dish Network

So it’s a good time had by all! It would seem that if Dish Network is successful detaching Softbank’s deal with Sprint to pick up Clearwire, the remaining stocks would probably be delivered to Dish with a bow. It all depends on the FCC though, of course, and we’ll be watching this deal closely as it continues to unfold through the Spring of 2013.

Bonus! AT&T carefully objected to the Softbank/Sprint acquisition two days after it was announced, well before the Clearwire dealings, too!

[via CNET]

Dish demands FCC see Softbank-Sprint deal “unripe for consideration” is written by Chris Burns & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Surprise news this afternoon as Clearwire announced it’s received an acquisition offer from Dish Network, even though Sprint was already on the hook to snap up the company for $2.2 billion. According to the press release (included after the break), a special committee of the Clearwire Board of Director’s has decided to negotiate with dish based on its proposal, although it has not changed its recommendation of the current Sprint transaction.

Predictably, Sprint is not taking the news well, producing a series of bullet points (also in the release) about why Clearwire can’t and / or shouldn’t sell to Dish. Dish’s statement is short and to the point, only saying it looks forward to working with the special committee as they evaluate its proposal. Of course, since Dish is offering $3.30 per share and Sprint is offering $2.97 one can see why the board is mulling it over, but all we know for now is that the “definitive agreement” with Sprint… wasn’t.

Continue reading Dish Network makes an offer to buy Clearwire, even though Sprint was already buying Clearwire

Filed under: Wireless, HD, Mobile, Sprint

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Source: Clearwire, Dish Network, Sprint

Huawei is a Chinese company that offers all sorts of hardware for mobile networks and other network systems. The Chinese company has been at the center of spying allegations made by the US government suggesting that Huawei may be allowing the Chinese government access to American network systems. Huawei continues to strenuously object to these claims and has offered access to its source code in an attempt to prove it’s not facilitating Chinese spying on America.

Despite the allegations of spying, Clearwire has announced that it will be using Huawei hardware in its high-speed LTE 4G wireless networks. Clearwire started out using WiMAX for its 4G network, but in new network rollouts, the company is moving to LTE technology. Clearwire plans to start rolling out its new 4G LTE networks in 2013.

Reuters reports that the US government has given the green light to Clearwire’s network rollout using the Huawei equipment. Currently, the biggest shareholder and customer for Clearwire is Sprint. Sprint does plan to use Clearwire’s LTE network that will operate on Huawei hardware.

Clearwire is already using Huawei network hardware for its existing WiMAX network. Clearwire has noted that it will require all hardware vendors and all software to pass extensive testing by third-party company that is approved by the US government to analyze critical infrastructure systems for weaknesses or potential spying software. The company will also be using network hardware from Samsung, Cisco, and Ciena Corp.

[via Reuters]

Clearwire chooses Huawei for LTE network is written by Shane McGlaun & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Clearwire’s figures show that the network it isn’t cool to love will be making placating faces at its bank manager for yet another quarter. It pulled in revenues of $313.9 million for the three month period, but with business costs (and depreciation) clocking in at $646.7 million, the company posted an operating loss of $332 million and a net loss of $41.3 million. If that wasn’t bad enough, it’s also hacked back a target to add TD-LTE to 5,000 sites before mid-2013 to just 2,000. A similar problem has occurred over at newly-minted majority owner Sprint, which has found itself a quarter behind its own LTE timetable thanks to parts shortages — so let’s hope the folks over at Softbank can help both companies improve their estimating skills.

Continue reading Clearwire sees wholesale revenues dip, LTE delays as it posts a $41.3 million net loss in Q3

Filed under: Cellphones, Wireless, Mobile, Sprint

Clearwire sees wholesale revenues dip, LTE delays as it posts a $41.3 million net loss in Q3 originally appeared on Engadget on Fri, 26 Oct 2012 07:23:00 EDT. Please see our terms for use of feeds.

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