Deal gets Clearwire more 2.5-GHz spectrum in California, Virginia, Maryland, and elsewhere

Dan Jones, Mobile Editor

June 25, 2009

1 Min Read
Clearwire Buys Up Oneida Spectrum

Clearwire LLC (Nasdaq: CLWR) has bought up 2.5-GHz spectrum assets from Oneida Communications Group in several areas of the U.S., but isn't saying how much it paid for the radio resources.

Clearwire says that the licenses it has bought include areas in Lynchburg, Va.; Parkersburg, W.Va.; Salisbury, Md.; and Santa BarbaraCalif. It hasn't said, however, how many potential users that covers.

Clearwire uses 2.5-GHz spectrum for both its deployed fixed wireless service and mobile WiMax service. Since closing its WiMax asset deal with Sprint Corp. (NYSE: S), the Kirkland, Wash.-based operator has access to over 90 MHz of 2.5-GHz spectrum in the U.S. (See A Clearwire Timeline .)

The carrier has consistently grabbed more 2.5-GHz spectrum when it can. In February 2007, Clearwire bought a tranche of the radio licenses from AT&T Inc. (NYSE: T). In June 2005, the company cut a similar deal with CT Communications Inc. (Nasdaq: CTCI). (See Clearwire Buys Spectrum.)

Oneida Broadband LLC was initially formed to acquire radio spectrum licenses in the 2.5-GHz band and planned to build and operate broadband wireless access networks, rather like Clearwire. In total, Oneida acquired licenses that covered 110 million MHz PoPs in the U.S.

The firm's investors -- Catalyst Investors and Northwood Ventures -- had already sold the major portion of the operation's 2.5-GHz licenses to Sprint in March 2008. Clearwire would have gotten these licenses as part of the creation of the "new" Clearwire; now it has the rest.

Neither Clearwire nor the investors are saying how much the remainder of Oneida cost. Catalyst, however, has invested at least $10 million in Oneida since March 2006, and the investor is claiming a two-times return on investment for its limited partners.

— Dan Jones, Site Editor, Unstrung

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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