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  • bjspokanimal bjspokanimal Dec 8, 2011 8:58 PM Flag

    Hesse Finally Gets it: Unlimited 100mb LTE

    ... and nobody ever said that contrarian plays like this are a cakewalk. CLWR has a lot of work ahead of them.

    You are absolutely right about EBITDA relative to their interest expense but I would also submit that CLWR's capital intensiveness also means that a large amount of what's "in" EPS and not in EBITDA is depreciation... and depreciation isn't a big deal when your depreciable infrastructure is brand spanking new...

    ... it gives you a lot of time to execute.

    I was impressed that Clearwire SERIALLY cut their negative EBITDA in HALF in Q3... From $112 million to just $56 million. If not for uncertainty surrounding sprint's I-Phone and curtailment of unlimited 4G, Clearwire would have affirmed their March EBITDA-positive projection and probably would have equated 15 million subs to a green EPS down the road.

    If CLWR can manage more than 1.2 million net new subs in Q4, that, combined with the sprint deal, would mean those projections would be back on.

    The one thing I'm VERY anxious to hear is an announcement by sprint that unlimited, un-throttled 4G is back on for all devices in the wake of the removal of volume payments on WiMax usage in the new, sprint/CLWR deal...

    ... which should be forthcoming once sprint see's the initial I-phone sales surge taper off.


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