Hasta La Gadget!

You know you’re having a wacky quarter when it involves a resigning CEO, lawsuits, and rumors that one of your wholesale partners is courting your potential replacement. But can you still come out on top? Clearwire answered this question during yesterday’s Q1 2011 earnings report to investors, and the answer is just as intriguing as the quarter itself. Though it posted a substantial revenue of $242 million, the company was also inflicted with a net loss of $227 million. Don’t worry, it gets crazier — Clearwire experienced record subscriber growth, seeing an increase of 533 percent year-over-year from Q1 2010. Sounds like a contradiction, right? A few factors led to the loss, such as higher costs from network expansion and writing off the “abandonment of projects that no longer fit within management’s strategic network plans.” A loss is a loss, but at least the future looks brighter; Clearwire predicts it will end the year with nearly a million more subs than originally forecasted (9.5 million, up from 8.8). Saving the best news for last, CEO John Stanton announced his company is no longer feeling the pressure to sell off some of its spectrum, primarily due to its recent $1 billion deal with Sprint. The deal will add enough cash flow to sustain network operations for the next year, so Clearwire just needs to make sure it uses some of the extra cash to buy us all something pretty. The full press release can be found after the break.

Continue reading Clearwire posts Q1 loss amid record subscribers, decides not to sell spectrum after all

Clearwire posts Q1 loss amid record subscribers, decides not to sell spectrum after all originally appeared on Engadget on Thu, 05 May 2011 07:20:00 EDT. Please see our terms for use of feeds.

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Although it might not make a difference to consumers, the 4G network ripping through Sprint-branded devices such as the EVO 4G doesn’t actually belong to the carrier. Rather, Sprint rents use of Clearwire’s network, and the two have been duking it out for months over just how much that service is worth. That battle finally came to an end today when Sprint, which happens to be Clearwire’s majority owner, agreed to pay at least $1.03 billion this year and next to run its WiMAX devices on the network. The two companies also agreed to mutual wholesale rights, meaning they can sell access to each other’s 3G and 4G networks to other providers. And they reached a pricing agreement for phones that offer both 3G and 4G connectivity — a bone of contention for Sprint, whose customers can’t all take advantage of 4G speeds, depending on where they live. Then again, Clearwire needs those billions precisely so that it can expand its network. As for Sprint, it can now blow less cash on legal fees — and instead gird itself for a potential three-horse race against Verizon and AT&T&T.

[Image courtesy of Mobiledia]

Continue reading Sprint to pay at least $1 billion to use Clearwire’s 4G network through 2012

Sprint to pay at least $1 billion to use Clearwire’s 4G network through 2012 originally appeared on Engadget on Tue, 19 Apr 2011 12:59:00 EDT. Please see our terms for use of feeds.

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Citing “personal reasons,” Clearwire boss Bill Morrow has rather suddenly stepped down from his positions both as CEO and executive board director. Replacing him on an interim basis will be John Stanton, current chairman of the board and former CEO of VoiceStream (a company you may know better as T-Mobile USA). Now, it’s no secret that Clearwire has been under a bit of pain lately — it’s scaled back its ambitious growth plans and shelved its retail strategy, not to mention the fact that 4G partner Sprint has been seen carousing with both LightSquared and T-Mobile lately — so it stands to reason that Morrow may have had a little help being shown the door. Follow the break for Clearwire’s full press release.

Continue reading Clearwire CEO Bill Morrow resigns

Clearwire CEO Bill Morrow resigns originally appeared on Engadget on Thu, 10 Mar 2011 16:17:00 EDT. Please see our terms for use of feeds.

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Bloomberg is citing “three people familiar with the talks” (it’s not often that we get a specific number!) as saying that LightSquared is in active negotiations with Sprint to use its network infrastructure as it builds out its L-band LTE network. As you might recall, LightSquared is the would-be 4G wholesaler that is in the process of repurposing some satellite spectrum for terrestrial LTE use — a concept the FCC has approved, but concerns over GPS interference could end up delaying or derailing the strategy altogether if they aren’t solved to everyone’s satisfaction. Of course, building out any sort of national terrestrial wireless network is a multi-billion dollar, multi-year type of venture, and presumably a tie-up with Sprint to use some of its hardware would help move matters along. What this means for Sprint’s existing dealings with Clearwire is unclear; the two operate a WiMAX network together, after all, but the carrier has made it clear in the past that LTE could definitely be an option in the future.

Sprint allegedly talking to LightSquared over 4G infrastructure deal, Clearwire should be sweating originally appeared on Engadget on Thu, 24 Feb 2011 11:53:00 EDT. Please see our terms for use of feeds.

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The fight isn’t over, but round one has certainly gone to Clearwire. Last month, Sony Ericsson sued the company for a logo that it thought to be too similar. And, indeed, they’re both vaguely swirly green blobs (that’s SE’s orb on the left). However, Clearwire has issued a statement indicating that a federal court isn’t so concerned, finding “insufficient evidence of likelihood of confusion and no irreparable harm,” denying a motion for a preliminary injunction. It’s unlikely that the case will go much further from here, but the final bell certainly hasn’t rung just yet. The full statement is below.

Continue reading Clearwire wins initial round against Sony Ericsson in trademark bout

Clearwire wins initial round against Sony Ericsson in trademark bout originally appeared on Engadget on Tue, 15 Feb 2011 22:55:00 EDT. Please see our terms for use of feeds.

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