Clearwire renews hope with spike in new 4G users
updated 06:00 pm EDT, Thu October 13, 2011
Clearwire expects to post good Q3 numbers
Clearwire has reported better-than-expected revenue for the third quarter, with stock jumping 21.5 percent on Thursday. This growth, if maintained, should help the company build the money it needs to upgrade its network and retain it, as it's been tied to selling its 4G network capacity to other carriers. Its long-time partner, Sprint, has also been rumored to be distancing itself from Clearwire, though the carrier's CEO has gone on record to say this wasn't the case.
While the official third-quarter report isn't out yet, Clearwire said it expects to report 9.5 million customers as of the end of September. Revenue should rise by 13 percent to $332 million. The full third-quarter results are promised to come in the next few weeks.
Sprint has nearly 50 percent ownership of Clearwire and has rights to use the Clearwire 4G network into 2012. The deal is worth $1 billion at a minimum.
Sprint has said it would build out its own LTE network next year rather than keep relying on Clearwire's WiMAX. Clearwire itself said it plans to build out a similar network, which is already used by rivals AT&T and Verizon.
More than one analyst credits the growth to Sprint and its strong 4G device sales that rely on Clearwire's 4G network. The two companies are thus likely to continue to depend on one another for growth. [via WSJ]
