Clearwire narrows losses, reports user growth, signs up Cisco

14 May 2009

Clearwire, the US wireless broadband operator 51% owned by Sprint Nextel, has reported a narrowing of first-quarter losses to USD71.06 million, compared to a pro forma loss of USD76.44 million a year earlier (before Sprint and Clearwire unveiled their USD12 billion partnership to combine their planned nationwide mobile WiMAX networks). Revenue in the three months to the end of March 2009 rose 21% year-on-year to USD62.1 million. According to TeleGeography’s GlobalComms database, Clearwire provides broadband internet services in at least 50 markets nationwide via fixed wireless networks which utilise a combination of pre-WiMAX and true 802.16e mobile WiMAX technologies. Clearwire, which has so far launched commercial WiMAX in Baltimore and Portland, Oregon, reported that it added 25,000 subscribers in the first quarter, bringing its total base to 500,000 (up 57,000 year-on-year). The firm expects to add 802.16e networks in Atlanta, Las Vegas, Chicago, Charlotte, Dallas/Fort Worth, Honolulu, Philadelphia and Seattle during 2009. The company said yesterday that it still plans to expand its ‘Clear 4G’ WiMAX service to 80 markets covering a potential 120 million customers by the end of 2010 but the plan could be altered depending on the availability of capital.

Also announced yesterday, Clearwire has selected Cisco as its national core infrastructure provider as it expands mobile WiMAX network coverage across the US. Clearwire’s all-IP network will be upgraded and extended under the deal, whilst separately, Cisco is also planning to move into the mobile WiMAX terminal device manufacturing market this year.

United States, Cisco Systems, Clearwire