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Clearwire Corporation (CLWRD) Message Board

  • SphyrnaLewini SphyrnaLewini Nov 10, 2011 9:16 AM Flag

    CLWR and China Mobile? CM MVNO plans and 2.5 GHz spectrum make sense...

    http://www.telegeography.com/products/commsupdate/articles/2011/11/10/china-telecom-reveals-us-mvno-plans/

    Bloomberg article broke yesterday. Interestingly, the article gave details that CM would look to have devices that could work in both US and China, but failed to see/acknowledge that they could achieve this with either:

    - 3G partnership with Sprint or Verizon
    - 4G wholesale deal or investment in CLWR

    China Mobile is already partnered with Clearwite in the Global TD-LTE initiative. One could speculate that a deal with Clearwire is the only way they could guarantee a 4G roaming service, especially if Apple's Chinese version of the iPhone is built for TD-LTE at 2.5 GHz.

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    • no problem. Everyone should buy all dips in SP is IMHO!

      kvnmccdd

    • llong54@ymail.com llong54 Nov 10, 2011 3:38 PM Flag

      @kvmmccdd

      thankyou

      best L

    • The US is a political-market driven economy.. far from 'pure capitalist theory' of Freeman or anyone else.

      Older lessons of how societies form and change show that human frailties come into play no matter what system is officially the law of the land: Greed, social and political divisions, religious prejudices, all come into play because we all societies are constituted by people and the legal entities they ascribe power. Systems of law and economics are fundamental for how societies form and function... but can all be corrupted by the less admirable sides of our baser human nature. Our more virtuous and necessary aspects of human and group nature, ie. the motivating factors such as "greed is good" principle, are like medicine: they are part of what keeps society alive and well but, if taken to extremes at the hand of any faction, can kill the patient.

    • llong54, very well said and simply put! No research papers needed, this is now in the end game of deal time! Surf is about to be up guys!

      kvnmccdd

    • When I first saw this, I thought it was a bit of wishful thinking to try and tie Clearwire to China Telecom’s moves especially in light of the fact that Hope Cochran specifically stated during the Goldman investor conference that accepting strategic equity from a Chinese company would be “tough” due to political concerns. A TD LTE roaming agreement with Clearwire makes sense, but would it have a material impact on either company’s balance sheet? Probably not, certainly not in the case of China Telecom. So why would China Telecom even be interested in starting a MVNO in the US? Thankfully for slower people like me, Mr. Tan was quite candid in his comments about buying a carrier or setting up their own infrastructure, and money being no problem. Reading between the lines, I’m guessing that China Telecom is looking at the MVNO as a beachhead.

      So maybe the political climate for a Chinese investment is not as difficult as some have said, or perhaps an equity infusion could be structured through some sort of roaming agreement? Thoughts?

      • 2 Replies to sweetred126
      • "China Mobile Communications Corp said in September that it has teamed up with U.S. 4G operator Clearwire Corp to develop high-speed mobile devices and infrastructure

        This is not unlike an elephant saying at new flee has joined in to help pull the load. I see little reason for it to be mentioned by CM except for setting the table for additional US involvement/investment. This acknowledgment of Clearwire teaming up is a low risk way of gauging political resistance to collaboration of a Chinese company in US communications development. There is little reason to believe CM won’t behave within Chinese norms and look very long term concerning relationship development. Find non-invasive (MVNO) opportunities to establish a positive business relationship yet get a toehold in a large market. They understand as all the Telco’s that Clearwire/Sprint owns or controls the largest homogeneous block of spectrum to be had in the US however are short of monies to fully capitalize on it quickly. They also know all the protectionist (legitimate national security) arguments that will likely be put forward with direct operational control of network assets. This would all point to developing a financial relationship that permits international customer or user symbiosis, although CM would survive regardless of the international travelers network access.

        All of that sounds nice, but it would have a long runway to be accomplished and time IS money for most investors. However I would guess an announcement of establishing an MVNO agreement with Clearwire or Sprint could significantly move pps.

        Regards,

      • The political climate in Europe may lend some clues: (you can skim this)
        EU block is even more dependent on trade with China that the US economy. They are experiencing economic contraction or stagnation at the same time that countries including Greece, Italy, Spain and Portugal must drastically reduce the level of government employment and public benefits.. which threatens to further reduce the level of economic activity, causing declines in government revenues. The threat is that any attempts at 'restructuring' the economy will be overtaken by further contraction.. a spiraling downward. While the US has a much more developed technology, education, and industrial base, we have nonetheless become overly dependent on imports, consumer and real estate debt, cheap overseas labor, and government 'jobs programs' that include diverse areas of defense, agriculture, aerospace, protected medical programs and industry segments, energy, that benefit from government spending, preferential tax treatment etc. Those institutionalized costs have become highly politically organized where it is difficult to do cut backs even thought deficits are soaring. That fact that they have been soaring, with rare interruption, for decades has aided the thinking that they are inalienable rights of corporations and individual rather than a benefit of a more robust society.

        The EU is having to reshape their financial structure due to debts that are coming due that the responsible countries can't or won't pay back. Germany and France are the largest economies but they alone have political and financial problems paying off the debts. So the EU economic leaders are heading to China to ask them, in the interest of global economic stability, to buy up a large portion, maybe $1 Trillion dollars worth over the next few years, of Euro country debt.

        The US political climate remains one of denial: We have a huge and mounting debt but there is little agreement on how to address it. Many Republicans have taken a locked-in stance that all tax increases are off the table. Many Democrats have taken the stance that many social programs or major reforms are off the table. Both sides agree in principle that tax reform and simplification that would result in capital going where it delivers the most benefit under the free enterprise system, rather than who has the best lobbyists/constituency, should be made a priority. However that faces unwillingness on the part of politicians to put their necks on the line. Lots of talk, much denial and blame for why nothing happens.

        ---

        Bottom line is that American will be forced to face economic realities similar to Greece, Italy, Spain, Ireland, etc. Look at how they are coming to grips with economic reality that is not all that far from our own situation. Stage 1) Denial there is a problem or that it will take major economic restructuring. 2) Admitting there is problem of historic proportions but blaming it on the other party, morals, or selected cape goat industries rather than owning up to it as a 'systemic' problem that impacts all and thus is everyone's responsibility and to their benefit to work out. 3) Finally when all of the above fails, take action on the brink of disaster.

        Part of the needed actions are to deal with China/APAC and other countries/regions by both demanding reciprocity of trade, currency valuations, access to markets, etc.

        The Chinese have about $3 trillion trade surplus. The EU wants some of that invested back. The USA should likewise follow out of necessity.

        Bottom line is that political opposition to Chinese investments will probably grow less... China Telecom probably sees it that way and wants to get into a position to serve trans-nationals with MVNO services and make investments the political climate allows.

    • llong54@ymail.com llong54 Nov 10, 2011 11:54 AM Flag

      you mean China Telecom cha right?

      Players: China Telecom, China Mobile, AT&T, Metro PCS, Dish, Google, Apple...
      Who can seal the deal with Funding/Buyout--Either they catch the CLWR Advanced TDD LTE Express Train 4G (1gig/1000meg per second) now or they're stuck on the FDD LTE slow train of lost opportunity and future failure.(more likely)

      I like the part where china Telecom says:

      “If the service is growing fast, maybe we can set up our own infrastructure,” Tan said. “The money is no big problem for us.”
      At the end of June, the Chinese company had $9.6 billion in total current assets, including about $4 billion in cash.
      They don't want to just be a passenger...

      Maybe just stirring the pot or could they avoid any government objections by funding CLWR? (seems like good fit and blocks china mobile)
      We'll see.

      best L

 

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