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Clearwire Corporation (CLWRD) Message Board

  • reglreg reglreg Nov 5, 2010 1:44 AM Flag

    CLWR admits, "...may not be able to continue as a, 'going concern' "

    Not surprising, but AH performance rather indicates investors are agreeing CLWR's circling the proverbial drain. From Bloomberg last night:

    http://www.bloomberg.com/news/2010-11-04/clearwire-cuts-jobs-amid-cash-shortfall-that-threatens-business.html?cmpid=msnmoney

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    • Many companies include boilerplate risks in their SEC filings but for CLWR ceasing operations could be the real deal.

      CLWR's data-centric business model doesn't capture enough revenue or profit to cover its cost. CLWR's fixed access service isn't competitive with cable or fiber performance or QOS and its mobile service isn't competitive in coverage or in-building penetration.

      CLWR's claim to fame is its "unlimited" service until one reads CLWR's AUP and realizes that CLWR doesn't allow users to self-host, upload/download videos, stream more than "ocassionally" or do many of things that Internet users want to do via the net. Before you disagree with the above statement read the AUP first.

      And furthermore, the speed is woefully inadequate for fixed access. CLWR routinely advertises 6Mbps downloads but visit any BB where CLWR is sold and perform an actual test. You'll see maybe 3.9Mbps download, and less than 1Mbps upload which means you can't even reliably use Skype's HD 720p videochat capability. And latency is awful (over 100ms) virtually prohibiting reliable VoIP and that's assuming you'll get at least as good a connection as BB does in their demo setup.

      But there's more bad news. CLWR's retail channel is a disaster. Only 150K net adds in a quarter after nearly two years of operation? Put retail out of its misery! But Wholesale is not much better. 45% of what CLWR calls subscribers don't even live in an area with CLWR coverage so Sprint only pays CLWR a nominal fee for those subs. The number of subs CLWR actually receives wholesale compensation for is just slightly more than half the quoted subs, and even that produces a shockingly low $4.46 ARPU. That could get bumped to a still low $9.04 IF CLWR can resolve disputes about compensation among resellers - most probably driven by roaming 3G/4G users, but this should have been solved long ago.

      CLWR has yet to present a plan that suggests it could ever make money.

      You have to ask yourself why CLWR's original investors like Intel and Google aren't rushing to invest more of their money in this?

      • 1 Reply to mega.hurts
      • "You have to ask yourself why CLWR's original investors like Intel and Google aren't rushing to invest more of their money in this?" Why not ask why they invested over 1.5 billion dollars the reason why they have not been profitable is because the majority of the build out did not begin until 2010(which everyone knew was going to happen because they stated that) now with reducing cost and increasing revenue don`t you think that`s a good plan for profitable.

    • totally stupid remark...........

      sell the company then......good lord....

      lmao !!!

 

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