Elevate, Sprint MVNO, adds WiMAX from Clearwire in deal

[ericdabbs]

Looks like another Sprint MVNO, Elevate, is expanding their deal and adding Wimax to their lineup. This is great news for Clearwire since it adds more customers under their own brand and the key thing is that Elevate was a former customer of Lightsquared who has now defected to Clearwire. Here is to more customers jumping on the Clearwire bandwagon from Lightsquared to help them sustain a long year from the loss of Sprint customers to Sprint LTE.

 

http://www.wirelessweek.com/News/2012/04/business-Elevate-Expands-Sprint-MVNO-Deal-Adds-WiMAX/

[Duffman]

Actually, they have not really lost any customers as LTE is not a reality yet. Also, Sprint signed a 4-year deal with Clearwire in December.

 

Under the four-year deal disclosed Thursday, Sprint will pay Clearwire as much as $1.6 billion in network fees and other possible investments. The deal soothes investor fears that Sprint was seeking to distance itself from Clearwire after 2012 as Sprint builds its own high-speed network.

[S4GRU]

They will start losing customers starting this weekend. Every LTE smartphone sold now will be at the loss of Clearwire. Sprint pays Clearwire now a monthly fee for every WiMax device activated. Clearwire has enjoyed a guaranteed revenue stream from Sprint with every WiMax device sold.

 

Now with LTE devices, WiMax device sales are going to plummet. And thus, revenues to Clearwire from these Sprint devices.

 

Robert - Posted from my E4GT with ICS using Forum Runner

[irev210]

They will start losing customers starting this weekend. Every LTE smartphone sold now will be at the loss of Clearwire. Sprint pays Clearwire now a monthly fee for every WiMax device activated. Clearwire has enjoyed a guaranteed revenue stream from Sprint with every WiMax device sold.

 

Now with LTE devices, WiMax device sales are going to plummet. And thus, revenues to Clearwire from these Sprint devices.

 

Robert - Posted from my E4GT with ICS using Forum Runner

 

Duffman is correct - with the current deal, usage payments are gone.

 

Clearwire will receive $926 million for unlimited WiMAX service from Sprint for 2012 and 2013. $600 of that $926 million will be paid in 2012.

 

This is one of the reasons why Sprint is probably eager to discount wimax devices - they want as many people on wimax as possible right now - it offloads traffic at no additional cost.

 

The agreement goes back to the usage-based model in 2014 and Sprint has access to WiMAX through 2015 under the deal.

 

If you take a step back and look at the way the deal was made, it makes a lot of sense. They needed a fixed-payment stream to cover costs while Sprint switches to LTE and that's exactly what the agreement does.

 

By the end of 2013 and Sprint switches to LTE advanced and there are handsets out there that support Sprint's FD-LTE and Clearwire's TD-LTE, we go back to the usage-based model we saw before.

[S4GRU]

 

Duffman is correct - with the current deal' date=' usage payments are gone.

 

Clearwire will receive 926 million for unlimited WiMAX service from Sprint for 2012 and 2013. 600 of that 926 million will be paid in 2012.

 

This is one of the reasons why Sprint is probably eager to discount wimax devices - they want as many people on wimax as possible right now - it offloads traffic at no additional cost.

 

The agreement goes back to the usage-based model in 2014 and Sprint has access to WiMAX through 2015 under the deal.

 

If you take a step back and look at the way the deal was made, it makes a lot of sense. They needed a fixed-payment stream to cover costs while Sprint switches to LTE and that's exactly what the agreement does.

 

By the end of 2013 and Sprint switches to LTE advanced and there are handsets out there that support Sprint's FD-LTE and Clearwire's TD-LTE, we go back to the usage-based model we saw before.[/quote']

 

I'm pretty sure that previous WiMax usage agreements were paid to Clearwire per handset per month, not usage based. The LTE agreement with Clearwire is the first one I am aware of between Clearwire and Sprint that is usage based.

 

Robert via NOVO7PALADIN Tablet using Forum Runner

[Duffman]

I am on the edge of my seat waiting to see who is correct....

 

Edit: Looks like both may be correct according to this article. Does anyone else read that Sprint appears to be paying a flat rate for phones and a usage rate for mobile broadband... much like it charges its customers?

Edited April 11, 2012 by Duffman
Because I am half asleep.

[irev210]

I am on the edge of my seat waiting to see who is correct....

 

Edit: Looks like both may be correct according to this article. Does anyone else read that Sprint appears to be paying a flat rate for phones and a usage rate for mobile broadband... much like it charges its customers?

 

That's from last April.

 

The new deal that they entered into in December 2011 turned WiMAX into a fixed payment for 2012 and 2013, then back to usage in 2014.

 

From:

http://corporate.clearwire.com/releasedetail.cfm?ReleaseID=629282

 

The agreements modify prior wholesale pricing agreements and provide Sprint with unlimited access to Clearwire's WiMAX network to meet its growing 4G data demands. Under the terms of the agreements, Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013, subject to certain conditions. The agreements also establish long-term usage-based pricing for WiMAX services in 2014 and beyond. Sprint will have access to Clearwire's WiMAX network through at least 2015. Sprint plans to continue selling WiMAX devices with two-year contracts through at least 2012 and support those devices through the life of the contract.

[irev210]

I'm pretty sure that previous WiMax usage agreements were paid to Clearwire per handset per month, not usage based. The LTE agreement with Clearwire is the first one I am aware of between Clearwire and Sprint that is usage based.

 

Robert via NOVO7PALADIN Tablet using Forum Runner

 

Yeah, Sprint used to pay clearwire 6 bucks a handset per month. It was a big battle between clearwire and sprint on the 6 dollar fee. The relationship between Sprint and Clearwire has been pretty interesting, to say the least.

 

From many angles the fixed-payment system makes a lot more sense while they switch to LTE.

Edited April 11, 2012 by irev210

[ericdabbs]

I'm pretty sure that previous WiMax usage agreements were paid to Clearwire per handset per month, not usage based. The LTE agreement with Clearwire is the first one I am aware of between Clearwire and Sprint that is usage based.

 

Robert via NOVO7PALADIN Tablet using Forum Runner

 

I believe you are correct Robert. As far as I know, the LTE agreement with Clearwire would be Sprint's first agreement that is entirely usage base. The Wimax agreements should still be on a monthly per user base even with the extensions to 2015.

 

I really do hope that all out of contract Sprint customers and EVO customers start jumping on Sprint LTE. There is no reason to buy a Wimax phone at this point with its limited coverage.

[irev210]

I believe you are correct Robert. As far as I know, the LTE agreement with Clearwire would be Sprint's first agreement that is entirely usage base. The Wimax agreements should still be on a monthly per user base even with the extensions to 2015.

 

I really do hope that all out of contract Sprint customers and EVO customers start jumping on Sprint LTE. There is no reason to buy a Wimax phone at this point with its limited coverage.

 

Not sure - Duffman's article and the WSJ both say that Sprint paid on a per meg basis. This was probably in addition to a fixed fee per device.

 

The dispute revolves around the wholesale agreement under which Sprint customers ride on Clearwire's network when using 4G smartphones. Sprint pays for that access by the megabyte of data transferred.

http://online.wsj.co...0568311044.html

 

I don't have the time to dig into it more - not a huge deal either way they did it before.

Edited April 11, 2012 by irev210