Wall Street Transcript Interview with Christopher C. King, Award Winning Senior Telecom and Cable Services Analyst and Director at Stifel, Nicolaus & Co.: Who Will Win Clearwire Battle?

Wall Street Transcript

67 WALL STREET, New York - January 22, 2013 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Global Wireless Spectrum Allocation - Telco Dividend Yields - Smartphone Operating Systems - Mobile Trends in Emerging Markets

Companies include: America Movil S.A.B. de C.V. (AMX), AT&T, Inc. (T), Atlantic Tele-Network Inc. (ATNI), Centurytel, Inc. (CTL), Clearwire Corporation (CLWR), Comcast Corporation (CMCSA), Fairpoint Communications, Inc. (FRP), Frontier Communications Corpor (FTR), Liberty Global Inc. (LBTYA), NII Holdings Inc. (NIHD), Sprint Nextel Corp. (S), Vivo Participacoes S.A. (VIV), Telephone & Data Systems Inc. (TDS), TIM Participacoes SA (TSU), Time Warner Inc. (TWX), United States Cellular Corp. (USM), Verizon Communications Inc. (VZ), Windstream Corporation (WIN), Dish Network Corp. (DISH), MetroPCS Communications Inc. (PCS), Leap Wireless International In (LEAP)

In the following excerpt from the Wireless Communications & Telecom Report, an award winning telecommunications analyst discusses the outlook for the sector for investors:

TWST: You commented on the situation with Sprint attempting to buy Clearwire. What is that story, and why is it important?

Mr. King: That situation is still ongoing. Dish (DISH) has made an offer as well for Clearwire (CLWR). Sprint (S) currently has the majority ownership stake in Clearwire, so they are essentially trying to buy up the remaining portion that they do not already own. A lot of this effort is connected with SoftBank (TYO:9984) buying Sprint.

Right now, Sprint has an offer on the table of $2.97 to buy Clearwire. Dish is offering about $3.30 per share for Clearwire, but essentially they need Sprint's approval to move forward with the offer the way it's being presented, which Sprint clearly is not going to do. So right now, we expect Sprint's offer to go through and that deal should close sometime midyear or so.

TWST: What makes Clearwire attractive to both Sprint and Dish?

Mr. King: The reason Clearwire is attractive is its spectrum position. Clearwire has a lot of spectrum in the 2.5 gigahertz spectrum bands. That is what makes Clearwire valuable. Quite honestly, it is the only thing that makes Clearwire valuable.

TWST: Is part of that value because of limited spectrum? Are we going to see more spectrum become available, or is it pretty much tapped out?

Mr. King: More spectrum will become available eventually. The FCC is trying to cull back spectrum from the broadcasters, for example, to auction that off at some point.

TWST: Is there anybody besides Clearwire who owns spectrum that the providers are looking to purchase?

Mr. King: In December, the FCC granted Dish use of their spectrum for terrestrial purposes. As a result, Dish is sitting on a significant trunk of spectrum that isn't being used right now. It will be interesting to see...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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