Clearwire losses widen as revenue doubles; Sprint dispute near to an end

18 Feb 2011

Clearwire has posted a net loss of USD128 million for the fourth quarter of 2010, wider than a loss of USD98.7 million in the corresponding period twelve months earlier. Increasing costs failed to be offset by a doubling of revenue to USD180.7 million. The company added 1.55 million new subscribers during the quarter, bringing its total to 4.4 million, up from 668,000 at the end of 2009. Of the net additions, 126,000 were retail customers and 1.42 million were wholesale customers from clients such as Sprint, which depends on Clearwire’s network for its high speed WiMAX services. Clearwire plans to increase its network coverage from 119 million people to 130 million by the end of 2011, and double its subscriber base to 8.8 million by the same date.

Meanwhile, Clearwire CEO Bill Morrow said that the company’s revenues are set to grow significantly once a disagreement with Sprint is resolved. ‘While nothing has yet been finalised, we believe an agreement with Sprint is imminent and should result in substantial additional revenues for Clearwire,’ he said. The two companies have been locked in a dispute over how much Sprint should pay for data services for devices that run on both 4G and 3G networks. Sprint has argued that it shouldn’t have to pay premium wholesale prices for 4G phones when some of these devices were registered in areas that only have 3G coverage.

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