Clearwire losses widen as expenses mount

25 Feb 2010

US WiMAX operator Clearwire has posted a net loss of USD423,900 for the three months ended 31 December 2009, up from a loss of USD277,700 in the same period a year earlier. The company attributed its continued losses to rising expenses incurred as it rolls out mobile WiMAX services in more markets nationwide. Operating losses jumped by 63% year-on-year as network deployments gather pace, up to USD497,000 in the fourth quarter alone. Full year net loss was USD1.25 million in 2009. The company said that it expected to continue to report losses for the foreseeable future as its network is still at a relatively early stage. At the end of 2009 Clearwire covered over 34 million people in 27 markets with its ‘CLEAR’ branded mobile WiMAX networks, the telco expects to cover over 120 million by the end of 2010, rolling out to markets including New York, Boston, Washington, D.C., Houston, the San Francisco Bay Area, Denver, Minneapolis, and Kansas City.

Fourth quarter revenues were up 34% year-on-year as the new markets continued to attract new custom, totalling USD79,900 for the three months ended 31 December 2009. At the same date Clearwire had over 688,000 subscribers, up from 475,000 a year earlier. The company also successfully migrated a large number of its subscribers from its fixed networks onto its full mobile WiMAX networks, ending the year with 438,000 customers subscribed to the 802.16e network.

Bill Morrow, CEO of Clearwire, said: ‘Over the past year, Clearwire established its leadership in 4G mobile broadband services by building the largest 4G network in North America, raising additional financing to fuel our growth, supporting the 4G wholesale service launches for three of the most prominent communications companies in the US, and delivering solid financial results in a challenging economic environment. Our all-IP network and unmatched spectrum holdings have truly enabled us to become the 4G ‘network of networks.’ We now provide the underlying capability to Comcast, Sprint, and Time Warner Cable to serve the growing demand for mobile broadband services, and we are well positioned to expand our wholesale business even further. When coupled with the success of our own CLEAR retail brand, record subscriber growth, and our extensive market build plans for this year, we are confident that we remain on a strong growth trajectory for 2010.’

United States, Clearwire