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4G/3G/WiFi

Clearwire 'Confident' on Funding

8:10 AM -- It is no secret that Clearwire LLC (Nasdaq: CLWR) will need more funds to complete its WiMax network rollout. Until now, however, none of the company executives has delivered such a blunt statement about the subscriber numbers that will be covered if Clearwire doesn't get more money, as new CEO Bill Morrow did today in The Seattle Times

The CEO says the company does have the money, or, at least, can get it:

    We do -- $2.5 billion -- which gets us to the 75 million [potential customers] level, but we're planning for 120 by the end of next year. But as I've told many of the analysts, I'm confident we're going to get the funds. It will be there. It's more what terms we will have and how that will look, that's really what were more focused on and looking at right now.
The funding issues won't come as a surprise to regular Unstrung readers. The company said back in late August 2008 that it had funding for "at least 12 months." (See Clearwire Has Cash for 'at Least' 12 Months .)

Rolling a new greenfield network out at the rate Clearwire is doing it is a challenging and expensive business that can be beset with unforeseen extra costs. Nonethless, in today's environment, going to market could be challenging.

It seems more likely to me that Clearwire will be approaching partners old and new for additional cash. Intel Corp. (Nasdaq: INTC) probably isn't going to let its WiMax hopes fade yet; the cable companies have tied their colors to Clearwire's mast; and it will be interesting to see if Cisco Systems Inc. (Nasdaq: CSCO) and maybe even Huawei Technologies Co. Ltd. could stump up more cash.

— Dan Jones, Site Editor, Unstrung

joset01 12/5/2012 | 3:58:10 PM
re: Clearwire 'Confident' on Funding I'm curious when Intel might actually stop supporting WiMax. What's the point where Intel might decide its no longer worth funding WiMax?

DJ
kaps 12/5/2012 | 3:58:07 PM
re: Clearwire 'Confident' on Funding

Don't know the answer but I guess one correct statement would be "not soon" -- Intel is hosting some major WiMax analyst days in early September, all kinds of different device vendors scheduled to be on hand.


Has anyone seen chip price comparisons for WiMax vs. HSPA vs. LTE? Just curious to know what that delta is right now.

kaps 12/5/2012 | 3:58:07 PM
re: Clearwire 'Confident' on Funding

Don't know the answer but I guess one correct statement would be "not soon" -- Intel is hosting some major WiMax analyst days in early September, all kinds of different device vendors scheduled to be on hand.


Has anyone seen chip price comparisons for WiMax vs. HSPA vs. LTE? Just curious to know what that delta is right now.

AllKindsOfThings 12/5/2012 | 3:57:54 PM
re: Clearwire 'Confident' on Funding

Is the question when they stop support for clearwire or when they stop support for WiMax? I'd assume the'd not easily stop the latter, but the proof point for Clearwire will approach rather sooner than later. The irony is that one of the reasons for the not so impressive uptake may be that for many nomadic use cases, such as sporadic internet browsing, HTTP-Video transmission or for retrieving mail the existing WiFi type G does a sufficiently good job in todays Municipal, Free or Cable Company Contract Bundled WiFi setup, and that stuff doens't need much new equipment to be used, either.


Of course Intel can keep WiMax alive as a *nomadic* use case Internet  technology option embed some form of it in a WiFi/LowPower WiMax Mulitmode chip a default part of their Notebook/Netbook chipset for a very long time, and so they could also create multi-mode hotspots. Maybe they back this model up with a WiMax equivalent of a Femto, and drop that thing into any home access point they sell... 


i guess lotsa maybe and frequency issues to clarify though...


All the best...

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