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Posted

There is a difference in capacity. Every base station will allow a certain amount of users depending on the amount of spectrum allocated. The 700 mhz spectrum has a much larger coverage area per base station than higher frequencies. This can be mitigated with downtilt, but the higher frequencies allow higher capacity by default.

 

Sent from my Galaxy Nexus using Tapatalk 2

 

I was referring to what I perceived was a statement that higher frequencies supported higher bandwidth in that they could carry more bits per hertz than lower spectrum. Even considering the propagation differences the capacity per channel in terms of users is still the same irregardless of cell size each cell would be able to support the same amount of users per cell how does this effect capacity?

 

*edit* Other than the overall network capacity. Which no doubt with little effort and expense can be effected by tower height, downtilt, and power output.

Posted

I don't think Sprint should buyout Clearwire since they are trying to block the Verizon Wireless-SpectrumCo Deal. If that happens, Verizon will probably fire back at Sprint for trying to block their spectrum deal.

Sprint is already the majority shareholder in clearwire so what can verizon do?

Posted

Agreed. However, Sprint also knows that Clearwire is a definite, whereas PCS H Block or Dish spectrum are just possibilities. So they have to keep Clearwire in their back pocket for now. I would hold my nose and buy out Clearwire this year, if they can buy up remaining shares around a $1. It makes more sense than buying MetroPCS or Leap.

 

Robert

 

Exactly, never give up certainty for uncertainty. That's usually never a good idea.

 

I think Sprint would rather eat up clearwire vs letting tmobile or another major competitor buy them out. I am sure sprint is just waiting for the right time to buy them out. I feel like the quarter after sprint becomes profitable, they swallow up clearwire.

 

Yeah, seems like they are. Right now sprint has a lot of debt and if they buy clearwire out then cleawires debt will now be reflected on sprints balance sheet which will make sprint look even more worse off than they really are and that wouldn't look good when it comes to other creditors that they already owe money too and may need additional financing from.

 

If sprint has its focus set on running a 38,000 tower network and getting its income statement positive, the only use that spectrum will ever be to them is additional capacity for spectrum strained markets. If sprint became owner of clearwire tomorrow, what would they do? Make plans to throw cards on towers in densely populated places on their nv towers and sit on the rest of it until they can start decommissioning sites. Then be more scrutinized because they have a plentiful supply of cost prohibitive spectrum the next time they try to get other spectrum. I agree that clear is a liability as long as they dont own it, but Im not sold on the idea of cash strapped sprint "outright" either. Just seems even more risky that what theyre doing now. Both need a sugar daddy! If money is scarce for buildout, clear isnt a great buy.

 

With all that extra spectrum they could make a killing on the wholesale market. That's a lot of revenue with minimal overhead costs.

Posted

I was talking about what Sprint could do with that spectrum, so it is not just sitting unused. Clearwire does not have the funds, but sprint would. Also Sprint would not need to make a nationwide 2.5ghz network.

 

You're talking about a budget sheet that doesn't have room to bring 1000 nextel towers in iden only areas into Network Vision..... I'm not slamming them, but Sprint definitely isn't in a position to build any new 2.5GHZ only towers in the short term... maybe they will look at it again in 2014/2015? I do suppose they could throw it on tons of network vision towers, create islands of high speed service and sell to the covered islands.

 

If you envision using the spectrum depth for broadband, the market cap of the current build has already been tested with wimax... I don't think it can get much cheaper than the prices clear is offering. If you're talking cable television, then you may be able to explore a whole new customer base, but it would have to be budget and could only be sold to folks in well covered areas... Would probably need to mount an external antenna to ensure service that isn't going to irritate people.

Posted

 

You're talking about a budget sheet that doesn't have room to bring 1000 nextel towers in iden only areas into Network Vision.....

 

We don't know how Sprint estimated keeping some iDEN sites to switch to Network Vision CDMA/LTE, or even if they did at all. The study of 1,000 sites is something I did last October as a project when I first received a document with all the Sprint sites.

 

That was back in the good old days of S4GRU when I had time to work on projects and articles instead of getting bogged down with managing a website.

 

Robert via Kindle Fire using Forum Runner

Posted

Clearwire at $1.05 right now. I still don't get the huge move downwards recently on Clearwire. I get the market sentiment in general has been negative but stocks like Clearwire have been heavily depressed so 5-10 cents downwards every day is huge.

 

Do investors have that little confidence in Clearwire despite 1) Lightsquared going bankrupt making Clearwire the major player in wholesale LTE and 2) Clearwire still maintaining revenue on Wimax with Sprint prepaid Virgin and Boost Mobile.

Posted
Clearwire at 1.05 right now. I still don't get the huge move downwards recently on Clearwire. I get the market sentiment in general has been negative but stocks like Clearwire have been heavily depressed so 5-10 cents downwards every day is huge.

 

Do investors have that little confidence in Clearwire despite 1) Lightsquared going bankrupt making Clearwire the major player in wholesale LTE and 2) Clearwire still maintaining revenue on Wimax with Sprint prepaid Virgin and Boost Mobile.

 

Not to mention that CLWR is worth an estimated $4 per share if assets are liquidated. Doesn't make sense. I may buy more if it drops below $1.

 

Robert - Posted from my E4GT with ICS using Forum Runner

  • Like 1
Posted

I'm thinking Clear may be fairly valued. The spectrum value analysis I've seen seem to overvalue the spectrum, because I don't think they are weighing propagation characteristics of 2600 mHz enough. When you have to not double, but square, your tower build-out, to achieve fair in-building coverage, that to me drops the value of the spectrum quite a bit.

Posted

I'm thinking Clear may be fairly valued. The spectrum value analysis I've seen seem to overvalue the spectrum, because I don't think they are weighing propagation characteristics of 2600 mHz enough. When you have to not double, but square, your tower build-out, to achieve fair in-building coverage, that to me drops the value of the spectrum quite a bit.

 

At a $4 per share liquidation valuation, it was based on a very low spectrum value. 25% of the value of 700MHz, if memory serves. All this talk of a false spectrum crunch will only help drive the value of the spectrum up more over time.

 

Robert

  • Like 1
Posted

 

 

At a $4 per share liquidation valuation, it was based on a very low spectrum value. 25% of the value of 700MHz, if memory serves. All this talk of a false spectrum crunch will only help drive the value of the spectrum up more over time.

 

Robert

 

The smart money is hiring smart consultants that tell them that there is no such thing as a spectrum shortage. There might be fragmentation of spectrum but no spectrum shortage. Between the 700 MHz that Verizon is giving up, their own AWS spectrum that they might have to give up, the refarming of spectrum and the absorption of Metro and Cricket, there will be plenty of spectrum for LTE. That's not even counting the Dish spectrum. Also don't give up on at least 10+10 MHz of the Lightsquared spectrum. It might take a while, but it will become usable again. Then we have incentive auctions and white spaces. That's why the smart money does not value Clearwire as much as some people here do.

Posted
That's why the smart money does not value Clearwire as much as some people here do.

 

Ouch! Time will make fools of us all.

 

Robert

Posted

Sprint is already the majority shareholder in clearwire so what can verizon do?

 

Verizon will fire back at Sprint for trying to block their AWS Spectrum Deal with SpectrumCo because Sprint will have plenty of BRS and EBS Spectrum from Clearwire.

Posted

Verizon will fire back at Sprint for trying to block their AWS Spectrum Deal with SpectrumCo because Sprint will have plenty of BRS and EBS Spectrum from Clearwire.

 

Problem is that Tmobile is the main opposition for the cable company deal. Verizon should be going after them and trying to appease them to get approval. Sprint is guilty by association since they are part of that group who is against the deal but they have not been attending the meetings to discuss about this issue. Sprint's stance is that the FCC look at the spectrum assets that Verizon to see if they have enough and making the best use of it. Sprint hasn't officially said they oppose the Verizon deal unlike Tmobile. So I think it would not be smart for Verizon to attack Sprint about Clearwire when Sprint does not own them 100%. Until that day where Sprint acquires Clearwire, Verizon has no case.

Posted

I have a question in regards to spectrum holdings. I know Clear has access to all that BRS / EBS spectrum, but isn't it spread over the entire frequency range, and not in blocks? That wouldn't help Sprint in short-term in adding capacity right?

Posted

Sprint's BRS spectrum that they brought into the partnership is contiguous but channelized into 6Mhz channels. Sprint/Clearwire had to apply to the FCC to allow them to aggregate these channels into 10, 20 or 40MHz channels. Clearwire's EBS leases are a bit more scattered. If you want to know about a particular location you have to use FCC's spectrum tools to find out Clearwire's leases for that area.

  • Like 1
Posted

Clear will go bankrupt in a few years. 2600 mHz spectrum simply requires way too much capex due to its propagation characteristics. Wireless operators don't need more spectrum. They'll reallocate existing and will fill in addition cell sites as needed in high demand areas and use edge balancing technologies to maintain capacity. Sprint has little interest in owning Clear.

Posted

Cell sites are more expensive than adding additional carriers and take longer. Also no carrier is going to build a nationwide 2600mhz network, but to use it for capacity is very smart. Have a sub 1Ghz band to build coverage, and a high band for capacity. Our data usage is still growing at an exponential rate, and who knows if it is going to subside. Now phones can play HD video, and we have apps like youtube, Netflix, etc. That spectrum is going to be useful in the future in cities, rural areas not so much.

Posted
Clear will go bankrupt in a few years. 2600 mHz spectrum simply requires way too much capex due to its propagation characteristics. Wireless operators don't need more spectrum. They'll reallocate existing and will fill in addition cell sites as needed in high demand areas and use edge balancing technologies to maintain capacity. Sprint has little interest in owning Clear.

 

Sprint owns 51% of Clearwire already. They have the majority vote. And it wouldn't be hard to buy out the remaining 49%. Just do an all stock transaction. It would be pretty easy. The only issue with that right now is the extra debt.

 

Sent from Joshs iPhone 3Gs using Forum Runner

Posted

Sprint owns 51% of Clearwire already. They have the majority vote. And it wouldn't be hard to buy out the remaining 49%. Just do an all stock transaction. It would be pretty easy. The only issue with that right now is the extra debt.

 

Sent from Joshs iPhone 3Gs using Forum Runner

 

I thought Sprint owns 54% of Clearwire but only has a 49.6% voting stake in Clearwire. I believe thats right but someone can correct me if I am wrong.

 

I agree that Clearwire should be bought out by Sprint eventually but not now. Sprint needs to remain focused on Network Vision. They have a very long way to go especially since they don't even have 1000 NV sites up yet. Even with an all stock transaction, its still not a good deal since Sprint's stock price is so depressed still. I would love Clearwire to keep focused on working on the TD-LTE standard and actually deploy LTE sites. I am very eager to see the performance of Wimax towers with LTE overlay with fat 20 MHz pipes.

Posted

Sprint's BRS spectrum that they brought into the partnership is contiguous but channelized into 6Mhz channels. Sprint/Clearwire had to apply to the FCC to allow them to aggregate these channels into 10, 20 or 40MHz channels. Clearwire's EBS leases are a bit more scattered. If you want to know about a particular location you have to use FCC's spectrum tools to find out Clearwire's leases for that area.

 

thank you thank you!

Posted

Here's Sprint's ownership interest in Clearwire directly from their first quarter 10-Q filing with the SEC.

 

Equity Method Investment in Clearwire

 

Sprint's Ownership Interest

 

Sprint's investment in Clearwire Corporation and its consolidated subsidiary Clearwire Communications LLC (together, "Clearwire") is part of our plan to participate in the fourth generation (4G) wireless broadband market. Sprint offers 4G products utilizing Clearwire's 4G wireless broadband network in available markets. As of March 31, 2012, Sprint held approximately 50.0% of a non-controlling economic interest in Clearwire Communications LLC and a 47.1% non-controlling voting interest in Clearwire Corporation (together, “Equity Interests”) for which the carrying value totaled $1.4 billion.

 

http://www.sec.gov/A...tq1201210-q.htm

Posted

Thanks for posting. I didn't know that they only had 47.1% of voting power. Surprising.

 

It's gone down. It had been 49.7%. They dropped below 50% back in 2010 when their was concern that Clearwire's debt would burden Sprint if they were considered to have control of Clearwire. Since then Sprint has had >50% economic control but <50% voting power. When Clearwire did their last round of fund raising they issued more stock which seems to have diluted Sprint's share further. I'm curious if Sprint will let their economic stake drop below 50%.

Posted

I think Sprint said they would buy more share to not dilute their stake any further.

 

 

Equity Investment

 

Sprint has committed to providing additional equity funding to Clearwire in the event of an equity offering. If Clearwire raises new equity between $400 and $700 million, Sprint will participate in the offering on a pro rata basis up to $347 million, consistent with Sprint’s current voting interest of 49.6 percent on the same terms and conditions as other participating companies.

 

http://www.bgr.com/2011/12/01/sprint-and-clearwire-ink-new-4g-wimax-and-lte-agreement/

 

I guess it was not enough to stop the diluting if they are down to 47% voting power.

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