Clearwire CEO promises WiMAX handsets by Christmas 2010
I believe this resolves the on-going complaint with the merlot/sanddollars/wherefore's of the world. Clearwire will now be able to sell strict phone service along with their mobile broadband offerings, thus increasing their market and ability to generate revenue. This news coupled with the new debt and equity funding make me a happy investor. I'm in.
Clearwire launched retail services for its mobile WiMAX play in a handful of new markets, and CEO Bill Morrow reiterated hopes that the company might expand its roster of wholesale partners. Additionally, Morrow promised WiMAX smartphones by Christmas of 2010.
Clearwire rolled out retail services in Chicago, the Seattle metro area, Honolulu and Maui as well as markets in North Carolina and Texas--markets in which the company had previously announced services. More importantly though, Morrow said Clearwire--which just received $920 million in new debt financing--could ink deals with new resellers. Sprint Nextel, Comcast and Time Warner Cable currently offer WiMAX services through partnerships with Clearwire.
"We are talking to all of them," Morrow said in an interview with mocoNews. "We are talking to carriers, cable operators, phone [landline] companies and satellite. We welcome everyone on ... It's good for Clearwire." During Clearwire's third quarter earnings conference call, Morrow said that the company is "ramping up our systems to be able to support even more wholesale customers."
Morrow also addressed one of the big hurdles Clearwire faces in achieving mass market success: the relative dearth of compelling devices. He acknowledged the company currently is focused on laptops and data cards, but noted it will add WiMAX-capable smartphones in the second half of next year. "I wouldn't count on it by summer, but before Christmas," he said.
The comments echo those made by Sprint Nextel CEO Dan Hesse, who told FierceWireless in October that Sprint, which owns a majority take in Clearwire and is a wholesale partner of the company, would launch dual-mode 3G/4G phones next year.
So what does the future hold for Clearwire? Pike & Fischer predicted the company stands to grow its WiMAX customer base in the U.S. to roughly 600,000 by the end of 2010, and will generate revenues of up to $580 million.
Merlot: No professional investor cares about CLWR's pre-WiMAX Expedience customers unless they convert to WiMAX, and those conversions are already factored into the 600K WiMAX total forecast.
I dislike repeating myself Merlot. We've been over this. There's 550K current subs. By your measure, then, that's a net add of 50k subs, which is a ridiculous measurement, even by your biased standards. Give me a break.
A WiMAX "capable" smartphone a year from now is likely to use Sprint's 3G service for voice, and while it may be an improvement over no smartphone at all the bulk of that voice revenue will flow through CLWR to Sprint.
Secondly, if CLWR achieves the 150 Million POPs it claims it will have by 2010, 600,000 WiMAX subs predicted by Pike & Fischer is way under 1% market penetration.
Single Mode 4G D2 Technologies, Beceem & ECS Extend VoIP over WiMAX to Android Smartphones and MIDs Interesting news from D2 Technologies I thought I'd share. They are announcing a partnership with Beceem and ECS to offer a turnkey solution for developing and delivering VoIP over WiMAX smartphones to market running the Android platform.
Firstly, CLWR has stated it would get to 120M POPs by 2010, not 150M. Get your facts straight. And if you had read the comments, there was a clarification from Pike & Fischer. 570k existing customers, 600k new customers = 1.2M, or 1% market penetration.
Also in reference to the bulk of revenue going to Sprint, I think that has all to do with the percent usage on the data n/w vs voice n/w. I don't think you can conceivably call the "bulk" of the revenue going to Sprint until you see the data usage. That being said, despite of the rev share issue, CLWR is still going to show a significant boost in subscriber base b/c of this offering, and the incremental cost of having these additional subs will be negligible. One more step to profitability in my opinion.
From the link:
Posted by Tim McElgunn | December 2, 2009 - 7:40am
To clarify - The forecast of 600,000 at YE 2010 is for WiMAX customers. Pre-WiMAX customers bring total subs to over 570,000 (U.S.) by YE 2009, 1.2 million total subs by YE 2010. - Tim McElgunn, Chief Analyst, Pike & Fischer Broadband Advisory Service