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WIKI ANALYSIS
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]
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]
Trends and Forces
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]
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,
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.
References
- ↑ http://finance.yahoo.com/q/pr?s=CLWR
- ↑ CLWR 2008 10-Q, p.17
- ↑ CLWR 2007 10-Q, item 1, p.6
- ↑ CLWR 2008 8-K, p.6
- ↑ CLWR 2008 8-K, p.1
- ↑ Businessweek online, TECHNOLOGY, March 4, 2008
- ↑ Business Week, TECHNOLOGY, March 4,2008
- ↑ CLWR 2008 10-Q, p.14
- ↑ CLWR 2008 8-K, p.7
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