Clearwire (CLWR)

• Article
• Discussion
• Edit
• History
• Bookmark

See all 4 Bulls Reasons Bulls: Reasons To Buy Rapid top line and subscriber growth 100% agree Rapid top line and subscriber growth Rapid top line and subscriber growth. View or Edit Reason 1 votes 100% agree The ''only'' pure-play WiMax service stock in the market 100% agree The ''only'' pure-play WiMax service stock in the market The only pure-play WiMax service stock in the market. View or Edit Reason 1 votes 100% agree Ownership of more WiMax spectrum than any company in the US 100% agree Ownership of more WiMax spectrum than any company in the US Ownership of more WiMax spectrum than any company in the US. View or Edit Reason 1 votes 100% agree See all Bears Reasons Bears: Reasons To Sell Burning cash at a high rate to fund large capital expenditures 100% agree Burning cash at a high rate to fund large capital expenditures Burning cash at a high rate to fund large capital expenditures. Time to positive cash flow is uncertain. Having already tapped the debt markets, CLWR may find accessing new capital more difficult in the future. Clearwire is banking on the fact that as it expands and brings in... read more View or Edit Reason 1 votes 100% agree CLWR may find accessing new capital more difficult in the future 0% agree CLWR may find accessing new capital more difficult in the future Having already tapped the debt markets, CLWR may find accessing new capital more difficult in the future. View or Edit Reason 0 votes 0% agree Clearwire faces increasing competition from other wireless technologies 0% agree Clearwire faces increasing competition from other wireless technologies Will face increasing competition from other wireless technologies (including LTE, satellite and municipal WiFi) and alternative last mile broadband technologies (broadband over powerlines, etc). View or Edit Reason 0 votes 0% agree Send the authors a comment or suggestion My first suggestion the author of this article is that he spontaneously create himself for the pu... more [Dismiss] [Done] See All Suggestions

Top Contributors Alan Jiang Related Articles WiMAX vs WCDMA Broadband Technologies 3G Best Buy (BBY) Comcast (CMCSA)

Clearwire (CLWR) is a relatively new wireless broadband service and equipment provider worldwide, including high-speed Internet connection as well as Voip. ^[1][2] They cater mostly to individuals and small businesses, and are present in 44 markets in the United States and 4 markets internationally.^[3] At this point, the company is still not yet protifable, as this is their primary source of revenue. However, Clearwire expects to grow explosively with the onset of WiMAX technology.^[4]

[edit] Business Financials

While the 2008 subscriber base of almost 400,000 is a 91% increase over the 2007 base, and revenues more than doubled,^[5] the company is still not yet profitable. Clearwire is in search of funding for its ventures, and currently has only $1 billion - enough only to allow it to become a regional player in the broadband industries.^[6]

[edit] Trends and Forces

[edit] Move to 3g Networks

With current wireless networks becoming unsatisfactorily pokey, there is a huge demand for faster and more efficient networks. WiMAX is Clearwire's response to this trend. It is essentially a super-wifi network: Their is broader coverage, on the order of miles, as well as higher bandwith, on the order of Megabytes. Clearwire is the only company to be a pure WiMax bet. Analysts estimate that WiMAX revenues can exceed $10 billion by 2012.^[7]

[edit] Partnerships and funding

Other companies interested in WiMAX include Intel, Motorola, SK Telecom, Google, Comcast, Best Buy, and Singapore Telecom may be interested in WiMax, but none of these companies have their future success pegged to the proliferation of WiMAX. Clearwire already has a profit-sharing agreement with Intel, which has committed to supporting WiMAX. Clearwire also has equipment purchasing agreements with Nextel and Motorola.^[8] Clearwire is also in talks to partner with Sprint in order to fully develop the WiMAX network. However, neither company is well-funded,

[edit] Competition

Most current competitors are better established and have more resources.^[9] However, Clearwire is the only pure play in WiMAX, so investment in this company is essentially a bet for WiMAX. Competition will have a negligible effect on Clearwire's long-term growth.

[edit] References

1. ↑ http://finance.yahoo.com/q/pr?s=CLWR
2. ↑ CLWR 2008 10-Q, p.17
3. ↑ CLWR 2007 10-Q, item 1, p.6
4. ↑ CLWR 2008 8-K, p.6
5. ↑ CLWR 2008 8-K, p.1
6. ↑ Businessweek online, TECHNOLOGY, March 4, 2008
7. ↑ Business Week, TECHNOLOGY, March 4,2008
8. ↑ CLWR 2008 10-Q, p.14
9. ↑ CLWR 2008 8-K, p.7