Last summer, Sprint's subsidiary, Clearwire Corp., announced their intent to launch LTE-Advanced on their network. Using time-division multiplexing, Clearwire had achieved 100-megabit speeds (about 10 times the speed Verizon runs "vanilla" LTE at) that were only possible on the wide channels made possible by their massive spectrum holdings.
In essence, Clearwire had demonstrated a technology leap that could bury Verizon and AT&T's vanilla (FD-LTE), narrow-channel LTE offerings.
Shortly thereafter, Clearwire inked a collaborative agreement with the Planet's largest carrier, China Mobile, to develop LTE-Advanced as a world standard on the 2.3-2.7 mhz spectrum favored globally for 4G... Clearwire owns 23% of all telecom wireless spectrum in the U.S. and ALL of it is 2.3-2.7 mhz spectrum.
So, when Sprint announced a couple of weeks ago that they were throwing Clearwire under the bus, spending $3 billion to REPLICATE Clearwire's 2010-vintage infrastructure, and launching "vanilla" LTE over the next couple of years on skinny spectrum channels (5x5 10-mhz channels until they can find more spectrum)...
... the world gasped.
What planet is Dan Hesse smoking is bong on???
Wasn't the Nextel screw-up and the WiMax mis-cue enough?
WHY...WHY are we making the same horrible mistake again?
Every analyst out there is trying to understand Dan Hesse amidst the analyst hand-wringing and the board-chairman's public apologies for him.
Just do it... FIRE the guy.
... are consuming much more data volume than Verizon or T-Mob's HSPA+ subs are because of the "unlimited" plans they've been offering at S/CLWR.
Simply put, unless sprint gets ahold of a lot more spectrum for it's "vanilla", FD-LTE launch, they won't have the spectrum to handle converting the data hogs on the WiMax network over to their LTE...
... and the data hogs will probably convert their subscriptions to whoever is offering plans on Clearwire's super-fast, LTE-Advanced system if they can get it off the ground with a carrier that wants to leap-frog Sprint's LTE performance.
... Dan Hesse was supposed to cover all aspects of I-phone's cost, ROI and projected revenues, including roaming strategies...
... to the amazement of everyone there, he drew a complete goose-egg on the subject.
That was one of the issues that Sprint's chairman was apologizing for.
When asked at that presentation about Clearwire's finances, he said "you'll have to talk to clearwire's management about that"...
... that was the most immature, childish statement by a majority-stake CEO I have ever heard.
Spok, why have you avoided the "reasons" why Sprint chose to go another way...I have posted them 20 times in your threads with nevera response...Do you avoid these because they make sense?
1. Last year Sprint paid Verizon over $2B for data roaming fees..With the addition of the iphone, that figure will go substancially higher...
I don't need to list any more now...I will wait on your response to this one first....
... It's an issue of Dan Hesse making huge mistakes regarding the leveraging of Clearwire's assets and capabilities.
Dan Hesse decided to REPLICATE Clearwire's infrastructure for a cost far greater than the cost of upgrading Clearwire's 2010-vintage infrastructure for LTE-Advanced...
... to bring up a version of LTE that will operate at 1/10 the speed and efficiency that such a Clearwire upgrade would run at.
Every analyst at the October 7th presentation was baffled by Hesse's idiotic strategy and Sprint's chairman was apologizing for him after the event.
Everybody with brain-one knows that Dan Hesse is making ANOTHER Nextel-calibur screw-up...
... I'm just wondering why he's still the CEO.
I do not think you understand that Sprint investors automatically
own a majority stake in clwr, so pumping clwr on this message board
>> Any deal that comes along to overlay LTE-Advanced using FDD on all of that
>> spectrum for the $600 million it would take will unleash what would be, by
>> far, the most powerful network in the U.S...[blah, blah, blah]
"Pointing up the difficulties of being a wireless broadband startup, McCormack and
Liddell say Clearwire is also billions short in funds. The analysts base their
estimate on Clearwire’s own comments about needing $150 to $300 million to keep
its current network active and an additional $600 million to expand its LTE
coverage to 120 million PoPs (points of presence.)"
"Since Clearwire would require even more money for “a little…safety” and to build
out a truly nationwide network, McCormack and Liddell say the company’s overall
funding gap is $2 billion total"
This independent assessment, by McCormack and Liddell, clearly explains why
Sprint is not forking over $600 million to clwr.
So, there you have it. Sprint investors already own a majority stake in clwr,
and clwr needs billions to build out their nationwide LTE network.
... are far in excess of it's share price.
Any deal that comes along to overlay LTE-Advanced using FDD on all of that spectrum for the $600 million it would take will unleash what would be, by far, the most powerful network in the U.S. for years to come in the cities where their 2010-vintage infrastructure is active (about 132 million POPs currently).
Many (dish, time-warner, comcast, MetroPCS) know that but have to get past sprint, the Lightsquared outcome and the T/T-mob merger to come to terms with it.
... the WiMax will have to be supported by S until 2014. WiMax just doesn't go off the air on Dec 31, 2012. By then a lot will have changed in ways only a few can predict with any certainty.
One of those in the know bot $5 million worth of CLWR stock and put CLWR on the path to a TD-LTE, multi-mode network.
"Clearwire inked a collaborative agreement with the Planet's largest carrier, China Mobile, to develop LTE-Advanced as a world standard on the 2.3-2.7 mhz spectrum favored globally for 4G... Clearwire owns 23% of all telecom wireless spectrum in the U.S."
What does this have to do with the U.S. market? Answer: nothing. China Mobile is looking for a way to increase its presence in the United States. This agreement was nothing more than an attempt to accomplish that. Unfortunately, as one can readily see, there's been no movement since that agreement was signed. Believe we can assume CM figured out trying to get a toehold here through a failing spectrum provider like Clearwire wasn't realistic. And, then there's this which it appears you completely missed or simply didn't want to mention because it weakens your point. Here's a lovely little summary from CNBC, September 21 (http://www.cnbc.com/id/44616474/BRIEF_Clearwire_not_pursuing_China_Mobile_investment_due_to_regulatory_issues )
"Clearwire Corp: * Says would be interested in investment from China Mobile Ltd but not pursuing it because of regulator issues "
Regarding the link YOU provided:
" http://www.dailywireless.org/2011/10/20/... "
What's the point? This is an article about the state of wireless telecom in India! NOT relevant! (Since it doesn't appear anyone bothered looking, I'd say it'd be safe to assume no one's reading your entire post)
RE: "horrible mistake(s)" after, "horrible mistake(s)" - see my other post about bankruptcy/receivership as a viable business plan...