... and instead, Sprint's paying $10 billion (yes, Virginia, almost 17 TIMES as much) to launch FD-LTE on skinny channels...
... and that will run closer to Verizon's speeds... or about 7 times SLOWER than TD-LTE tests out at on Clearwire's fat pipes.
Sprint is years behind AT&T and Verizon and they want to spend 17 times as much just to EQUAL their performance. That's a recipe for disaster.
Wait a second - if Company X buys Clearwire, they would own that spectrum, and 54% of the price they pay will go to Sprint. That meets my definition of owning the spectrum. Indeed, Sprint's decision may mean that they have a credible buyer for their shares in Clearwire. God knows Sprint needs the cash - to deliver on iPhone.
in running a meeting and a company with any degree of understanding their strengths and weaknesses... and how to exploit one in public and hide the other from the competition.
I would not want to go into a battle with these guys. They do not know how to win by using the weapons they have to their best advantage... to take advantage of the competitions' weak areas.
I'm very disappointed with Sprint's team. We waited all this time for the Network Vision just to find out management is blind.
... that lightsquared would be it's #1 partner of choice and Clearwire would be it's #2.
The reason is because L2 is contributing cash and sprint wins with L2 whether L2 gets off the ground or not.
Problem is, L2 is unlikely to get off the ground with it's multiple problems and won't contribute anything but a little satellite spectrum if it fails... leaving sprint in worse shape than it's big plan otherwise leaves it.
If L2 fails, and I think it will, CLWR picks up the slack, which I'm sure it'll need to do since I don't see sprint's big plan as presented today as viable at all.
Clearwire would be the nation's premier buyout candidate if not for Sprint holding half the shares. Besides it's "09/"10 infrastructure technology, it's spectrum alone is worth between $8 and $18 billion vs less than $4.5 billion in company debt. The spectrum is carried on the books at $4.2 billion book value.
The stock is priced where it is because sprint controls the shares and sprint is it's primary customer... thus, the PPS is a small fraction of the value of CLWR assets.
... Sprint is a 2 year old that's about to jump into the deep end of a swimming pool full of VZ/AT&T sharks.
Sprint's a money-losing company biting off big up-front iphone losses and unnecessarily huge cap-ex expenditures.
Clearwire just spent 5 to 10 billion building a network that's already AT network vision standards and only in need of an LTE overlay. It's inconceivable sprint wouldn't START with that then build the rest up around it.
That announcement venue was a circus today...
Certainly you would put an LTE network in place first.
The device makers can't be too happy either.
To keep everybody happy S will have to buy the new 4G phones from the makers and then give them away.
So, essentially, S just said WiMax is in an ambulance, getting $1 billion worth of CPR, but at the end of the ride, WiMax will be DOA... but don't worry because the driver has been blinded by AT&T and will crash before it gets to the hospital killing everyone on board.
unless there's some piece we're not seeing is missing.
My last line of defense logic was that $600 million vs $10 billion vs the price drop or gain in CLWR stock price.
Hesse's decision defies all logic... unless he knows CLWR is sold to a deep pockets player.
"Clearwire is uniquely positioned to offer capacity to Sprint, and other carriers, particularly in urban areas where demand is high and their 4G spectrum will be inadequate," explained a spokesman, in a statement emailed to TheStreet. "Sprint remains dependent on Clearwire for 4G and nothing about today's announcement changes that. Even with their re-allocation of existing spectrum, it's obvious that their spectrum resources are insufficient to meet the long-term demands of mobile data."
Wrong! 600M get's the WIMAX that they never fully completed rolled out. another 300M for the LTE. Still not bad considerring the Billions to build their own. But then they will own! Hey I am in CLWR also but I can see why Hesse and Sprint have the attitude they have toward CLWR. We still do not have Wimax rolled out everywhere Billions of Sprint money later. CLWR management really screwed up and lost their direction.
... Clearwire needs $600 million to overlay TD-LTE onto their network along with the current WiMax network. They need the additional $300 million for maintenance of their current network beyond the point in time when their cash is expected to run out... which is about the middle of next summer.
CLWR's infrastructure serves about 135 million POPS... or about half of what Sprint plans to spend $10 billion to gain access to with FD-LTE, which will run at roughly 1/9 the speed that CLWR tested out TD-LTE at in Phoenix using 20x20 2.5Ghz channels.
Sprint's decision makes no sense at all... it's nextel all over again. I anticipate S&P will downgrade sprint's debt from BB- to B or B- once they disclose how their going to finance the boondoggle they announced today.
Clearwire's network is 2009/2010 infrastructure. Except for the fact that they're running WiMax on it instead of the TD-LTE they've targeted to overlay onto it, that network is ALREADY upgraded to sprint's network vision specifications...
... what a waste.
Sprint promoted 4g and called their phone 4g and charged customers more for 4g phones but never delivered in some states. I bet Sprint gets sued. Never should have advertised 4g in areas they didn't plan to deliver.