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Clearwire could delay TD-LTE?


Rawvega

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http://www.fiercebro...cast/2012-09-30

 

Clearwire could delay part of its TD-LTE rollout, may bid adieu to Comcast

 

 

September 30, 2012 | By Tammy Parker

 

Clearwire (NASDAQ:CLWR) might delay part of its TD-LTE deployment over the next nine months and may also be losing another investor, according to a filing with the Security and Exchange Commission.

The SEC filing reiterated Clearwire's long-standing plan to wrap up by end-June 2013 its phase one deployment of TD-LTE sites over 5,000 existing WiMAX sites in densely populated urban areas. Sprint Nextel (NYSE:S) is Clearwire's largest wholesale customer and shareholder and plans to use Clearwire's TD-LTE network to augment its own FDD-based LTE service.

 

Clearwire said in its SEC filing that in addition to the 5,000 selected sites it will also "consider sites in other areas where Sprint and other current and future wholesale partners express a need for excess data capacity and where we believe we will be most likely to generate sufficient revenues."

 

However, the company also appeared to give itself an out in case it runs behind schedule. "Our agreements with Sprint also provide flexibility to modify the pace of our LTE deployment and remain eligible for the full amount of LTE prepayments from Sprint. As such, in order to better align our capital expenditures with the receipt of expected LTE revenues, we are currently evaluating our plans and may elect to delay a portion of our deployment schedule accordingly," said Clearwire's filing.

 

The company did not share details regarding where or when those delays might occur.

Clearwire says it has sufficient cash to fund its near-term liquidity needs through at least June 30, 2013. Over the long-term, the mobile broadband operator hopes to overlay 8,000 of its existing WiMAX sites with TD-LTE over 20 MHz-wide channels.

 

Clearwire CFO Hope Cochran recently said construction of the company's TD-LTE network will pick up significantly this quarter. The operator intends to make use of vendor financing for its LTE network buildout, and will announce its vendors next month.

 

IMO this could disastrous. Clearwire needs to be trying to get ahead of their schedule, not announcing that there could be delays before they've even begun.

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I think it has something to do with them scheduling their upgrades after Sprint's in each market, not being ahead of Sprint's upgrades for that same market. Makes sense if they are going to serve as the relief valve for Sprint's network.

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I see this as a good move. It sounds like to me they are saying they may have to delay some of their market deployments to add LTE hotspots for Sprint instead, when called upon. At least its a good move for Sprint customers and the Sprint network.

 

Robert via Samsung Galaxy S-III 32GB using Forum Runner

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I see this as a good move. It sounds like to me they are saying they may have to delay some of their market deployments to add LTE hotspots for Sprint instead, when called upon. At least its a good move for Sprint customers and the Sprint network.

 

Robert via Samsung Galaxy S-III 32GB using Forum Runner

 

It seems to be strictly a financial decision to me..

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