Clearwire Sets Timeline For 4G Deployment Into Major Cities
October 18 2010 - 09:42AM
Dow Jones News
Clearwire Corp. (CLWR) on Monday spelled out when its
fourth-generation wireless network would cover New York, San
Francisco and Los Angeles, addressing questions about the reach of
its service and the speed of its rollout.
Clearwire said its 4G network would be available in New York
Nov. 1, Los Angeles Dec. 1, and San Francisco in late December.
Having started its rollout of a more readily available 4G
technology called WiMax more than two years ago, Clearwire and
majority shareholder Sprint Nextel Corp. (S) enjoyed a significant
lead in the race for next-generation wireless services. But
Clearwire's slow deployment strategy, which avoided major media
markets such as New York and San Francisco in favor of lower
profile cities such as Portland and Las Vegas, has allowed other
companies to considerably narrow the gap with their own 4G network
deployments.
Because Clearwire's services are still unavailable in the media
hubs of New York and San Francisco, they haven't received much
attention. Sprint, Clearwire and investor Time Warner Cable Inc.
(TWC) made their announcement about New York in a joint statement,
while Comcast Corp. (CMCSK, CMCSA) was part of the San Francisco
announcement.
It is, however, available in 56 markets across the U.S. The
company also plans to get its 4G network up over other major cities
including Denver, Miami and Cincinnati.
Later this year, Verizon Wireless--jointly owned by Verizon
Communications Inc. (VZ) and Vodafone Group PLC (VOD)--plans to
initially launch its network, which runs on a more widely embraced
4G technology called Long-Term Evolution, in 38 cities, including
most of the major metropolitan areas. MetroPCS Communications Inc.
(PCS) has already launched its own LTE network in Las Vegas and
Dallas.
The pace of the buildout has been a key source of friction
between Clearwire and Sprint. Clearwire Chief Executive William T.
Morrow, in an interview earlier this month, acknowledged tension
over the deployment plans, as well as the development of its own
direct retail channel, which competes directly with the same
service Sprint resells to its customers.
Earlier this month, Sprint's officers, including Chief Executive
Dan Hesse, resigned from the Clearwire board in what was widely
seen as a way to remove the executives and increase Clearwire's
flexibility to strike new deals. Clearwire has been in talks with
companies such as Deutsche Telekom AG's (DTEGY) T-Mobile USA about
the potential sale of some of its wireless spectrum assets.
Morrow, however, said the moves were unrelated to any possible
future deals.
Despite the slow buildout, Clearwire is starting to gain
momentum. In the second quarter, the company added 722,000
subscribers, bringing its base to 1.7 million customers.
Much of the growth came from Sprint, which has sparked interest
in 4G technology through the sale of its Android-power smartphone,
the Evo 4G, made by HTC Corp. (HTCXF, 2498.TW). In the third
quarter, the carrier followed up the device with the Samsung
Electronics Co. Ltd. (SSNHY, 005930.SE) Epic 4G.
Clearwire shares remain unchanged at $6.93 in premarket
trading.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153;
roger.cheng@dowjones.com
(Spencer Ante contributed to this article.)
Clearwire Corp. - Class A (MM) (NASDAQ:CLWR)
Historical Stock Chart
From Feb 2024 to Mar 2024
Clearwire Corp. - Class A (MM) (NASDAQ:CLWR)
Historical Stock Chart
From Mar 2023 to Mar 2024