Clearwire: the future is bright

13 Jun 2008

According to the Financial Times, Clearwire, the wireless broadband company formed by Sprint Nextel, Clearwire and a handful of other partners, expects to have 1.3 million US subscribers by the end of next year, rising to 4.6 million in 2010. Clearwire’s bold ambitions for its proposed nationwide US network based on WiMAX technology, were announced yesterday by CEO Benjamin Wolf who detailed the company’s business plan and timetable during a presentation to investors. The deal to create the new Clearwire, which includes a USD3.2 billion investment from Intel, Google and the three of the largest US cable network operators (which will have a combined 22% stake), is expected to close at the end of 2008. ‘By merging Sprint’s WiMAX business with Clearwire, we have all the key elements to build the communications company of the future,’ said Mr Wolf. Scott Richardson, Clearwire’s chief strategy officer said the company plans to offer a suite of both fixed wireless and mobile wireless voice and data services – including wireless VoIP and mobile entertainment – for a combined monthly spend of between USD109 and USD258 per subscriber. He projected average monthly revenue per user for Clearwire of USD49 initially rising to USD64 as new services are added. He said Clearwire expects to offer wireless broadband coverage to between 60 million and 80 million people in 2009 and as many as 220 million people by 2017 by which time Clearwire executives expect to have signed up 30.8 million subscribers.

United States, Clearwire, Sprint Corporation (now part of T-Mobile US)