Showing posts with label Clearwire. Show all posts
Showing posts with label Clearwire. Show all posts

Monday, July 8, 2013

Clearwire Shareholders Approve Sprint Takeover

A required majority of Clearwire stockholders not affiliated with Sprint or SoftBank voted to approve the deal under which Sprint will acquire all shares of Clearwire which it does not currently own for $5.00 per share.

Sprint now expects to close the transaction on Tuesday, July 9th.  Softbank's acquisition of Sprint should follow on Wednesday, July 10th.

"We are pleased that our stockholders recognize the value and merits of our merger with Sprint," said Erik Prusch, President and CEO of Clearwire. "The Clearwire team is looking forward to working closely with our counterparts at Sprint to realize the potential of our assets inherent in this combination as we integrate our two companies.

http://www.clearwire.com
http://www.sprint.com

Thursday, June 20, 2013

Sprint Raises its Bid for Clearwire by $5/Share

Sprint increased its bid to acquire the approximately 50 percent of Clearwire it does not currently own (the “minority stake”) by $5.00 per share, valuing Clearwire at approximately $14 billion, or about $0.30 per MHZ-pop.

The new offer represents a 47 percent premium to Sprint’s previous offer of $3.40 per share announced on May 21, 2013 and a 285 percent premium to Clearwire's closing share price on Oct. 10, 2012, the day before the Sprint-SoftBank discussions were first confirmed in the marketplace and Clearwire was speculated to be a part of that transaction. This offer also represents a 14 percent premium to the $4.40 per share DISH tender offer.

Sprint said the sweetened offer demonstrates its commitment to closing the Clearwire transaction and improving its competitive position in the U.S. wireless industry. 

http://www.sprint.com

Monday, June 17, 2013

Sprint Sues Dish and Clearwire

Sprint filed a lawsuit against DISH Network Corporation and Clearwire Corp. seeking to block the DISH tender offer for Clearwire.

Sprint argues the the transaction violates its rights and the rights of other strategic investors under Clearwire’s charter and under the Equity Holders Agreement.

http://www.sprint.com

Tuesday, May 21, 2013

Sprint Ups its Bid for Clearwire

Sprint announce a new bid of $3.4 per share to acquire the approximately 50 percent stake in Clearwire that it does not currently own. This values Clearwire at $10.7 billion.

Sprint's increased offer represents a 14 percent premium to Sprint’s previous offer of $2.97 announced on Dec. 17, 2012 and a 162 percent premium to Clearwire's closing share price the day before the Sprint-SoftBank discussions were first confirmed in the marketplace on Oct. 11, 2012 when Clearwire was also speculated to be a part of that transaction.

Sprint said this offer represents its "best and final offer."

http://www.sprint.com

Monday, May 6, 2013

Clearwire's Board Favors Sprint's Acquisition Bid


Clearwire's Board of Directors is recommending to the company's stockholders that the proposed acquisition by Sprint is the best strategic alternative for the company, representing "fair, attractive and certain value, especially in light of the company's limited alternatives and the well-known constraints of its liquidity position."

Clearwire's board noted that the $2.97 per share offered by Sprint represents a substantial premium to the price received by other sophisticated investors in recent transactions. For example, Google received $2.26 per share for its Clearwire Common Stock on March 1, 2012, and Time Warner received $1.37 per share for its Clearwire Common Stock on October 3, 2012.

http://www.clearwire.com

Saturday, March 30, 2013

Clearwire Takes $80M in Sprint Financing, Continues Discussions with DISH


Clearwire elected to take an $80 million April draw under the terms of its agreements with Sprint.  The funding is in the form of exchangeable notes, which will be exchangeable under certain conditions for Clearwire common stock at $1.50 per share.

Clearwire also stated that it continues discussions with DISH over its proposal and that it intends to pursue the course of action that it believes is in the best interests of Clearwire's non-Sprint Class A stockholders.

http://corporate.clearwire.com/releasedetail.cfm?ReleaseID=751927


Tuesday, January 8, 2013

DISH Bids for Clearwire


DISH Network announced an offer to purchase all of the Clearwire common shares at $3.30.

“We look forward to working with Clearwire’s Special Committee as it evaluates our proposal,” said Tom Cullen, DISH executive vice president of Corporate Development.

Clearwire confirmed the offer and said the DISH proposal is "only a preliminary indication of interest and is subject to numerous, material uncertainties and conditions, including the negotiation of multiple contractual arrangements being requested by DISH."

Clearwire posted portions of the DISH proposal, including its intent to acquire spectrum covering approximately 11.4 billion MHz-POPs ("Spectrum Assets"), representing approximately 24% of Clearwire's total MHz pops of spectrum, for aggregate net cash proceeds to Clearwire of approximately $2.2 billion (the "Spectrum Purchase Price").   DISH said it might allow Clearwire to sell or lease up to an additional 2 MHz of Clearwire's spectrum to DISH from a channel that is adjacent to the Spectrum Assets at a price to be calculated in the same manner as the Spectrum Assets.  In addition, DISH said it may request certain commercial services from Clearwire, including the construction, operation, maintenance, and management of a wireless network covering AWS-4 spectrum and new deployments of 2.5 GHz spectrum.

Clearwire also posted  a summary of the response it has already received from Sprint regarding the DISH offer.  In essence, Sprint calls the DISH proposal " illusory, inferior to the Sprint transaction and not viable because it cannot be implemented in light of Clearwire's current legal and contractual obligations. "

http://www.dishnetwork.com
http://www.clearwire.com


  • On December 17, 2012, Sprint Nextel Corporation  agreed to acquire the approximately 50 percent stake in Clearwire it does not already own for $2.97 per share.
  • Clearwire holds the largest spectrum portfolio in the U.S. but in upper bands.  Its spectrum is an average 163 MHz in the top 100  U.S. markets.
  • Also in December, the FCC voted unanimously to approve an order that frees up 40 MHz of underutilized satellite spectrum for land-based mobile broadband, including 4G LTE.  The decision removes regulatory barriers that limited this spectrum to satellite use. The FCC said its action balances technical requirements and will unlock value in both the AWS-4 band and the 10 MHz H Block. DISH issued a statement supporting the action. 

Monday, December 17, 2012

Sprint Sets Clearwire Deal at $2.97 per share

Sprint agreed to pay  $2.97 per share for remaining shares of Clearwire that it does not already own.  The deal, has been accepted by Clearwire's Board of Directors, equates to a total payment of $2.2 billion for the outstanding 50% equity stake, and results in a total Clearwire enterprise value of approximately $10 billion, including net debt and spectrum lease obligations of $5.5 billion.

 Sprint said itss Network Vision architecture will be able to take full advantage of Clearwire’s complementary 2.5 GHz spectrum assets, while achieving operational efficiencies and improved service for customers as the spectrum and network is migrated to LTE standards.

“Today’s transaction marks yet another significant step in Sprint’s improved competitive position and ability to offer customers better products, more choices and better services. Sprint is uniquely positioned to maximize the value of Clearwire’s spectrum and efficiently deploy it to increase Sprint’s network capacity. We believe this transaction, particularly when leveraged with our SoftBank relationship, is further validation of our strategy and allows Sprint to control its network destiny, stated Sprint CEO Dan Hesse.

http://www.sprint.com
http://www.clearwire.com

  • Clearwire holds the largest spectrum portfolio in the U.S. but in upper bands.  Its spectrum is an average 163 MHz in the top 100  U.S. markets.
  • Clearwire operates a nationwide WiMAX network and has been planning to make the transition to TD-LTE.  Its main wholesale customer and investor is Sprint, which has extended its 4G agreement through 2015.  The companies have outlined ways of bridging their FD-LTE and TD-LTE networks with dual-mode devices that are under development.
  • Also in October, SoftBank announced plans to invest $20.1 billion to acquire a 70% in Sprint.  The deal consists of $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet.  The investment aims to accelerate Sprint's next generation network and its competitive position as the No. 3 U.S. mobile operator.  For Softbank, this represents a major leap beyond its home market of Japan, where it is the No. 3 mobile operator and No. 2 wireline broadband provider. The companies hope to get the deal done by mid-2013, pending regulatory approvals.
  • As of October 25th, Sprint’s Network Vision program  had over 4,300 cell sites on air and the number either ready for construction or currently being updated had more than doubled in the last three months to more than 13,500.  Sprint had completed leasing and zoning permits on more than 20,000 sites.  Weekly construction starts were up over 250 percent from the second quarter but the company expects to bring 12,000 sites on air approximately one quarter later than originally planned. 
    CAPEX reached $1.5 billion in the quarter, compared to $760 million in the third quarter of 2011 and $1.2 billion in the second quarter of 2012. 

    As of the end of Q3, Sprint had LTE available in 32 cities and expects to add 115 additional cities in the coming months. 

Thursday, December 13, 2012

Sprint Bids for Remaining Stake in Clearwire


Sprint Nextel has offered to acquire the remaining shares of Clearwire that it does not already own for a reported $2.1 billion.
Clearwire confirmed that it is currently in discussions with Sprint regarding a potential strategic transaction.
  • In October, Sprint increased its stake in Clearwire to 50.8% by acquiring the shares of Eagle River Holdings for $100 million.  Sprint previously held a 48% share in Clearwire, so this October transaction restored Sprint's majority control of the firm. Eagle River Holdings is controlled by telecom pioneer Craig McCaw.
  • Clearwire holds the largest spectrum portfolio in the U.S. but in upper bands.  Its spectrum is an average 163 MHz in the top 100  U.S. markets.
  • Clearwire operates a nationwide WiMAX network and is planning to make the transition to TD-LTE.  Its main wholesale customer and investor is Sprint, which has extended its 4G agreement through 2015.  The companies have outlined ways of bridging their FD-LTE and TD-LTE networks with dual-mode devices that are under development.
  • Also in October, SoftBank announced plans to invest $20.1 billion to acquire a 70% in Sprint.  The deal consists of $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet.  The investment aims to accelerate Sprint's next generation network and its competitive position as the No. 3 U.S. mobile operator.  For Softbank, this represents a major leap beyond its home market of Japan, where it is the No. 3 mobile operator and No. 2 wireline broadband provider. The companies hope to get the deal done by mid-2013, pending regulatory approvals.

Friday, October 26, 2012

Clearwire Slows LTE Rollout to Control Costs


 Clearwire will  defer a portion of its LTE network construction in order to better align CAPEX with the expected receipt of LTE revenues.  The company now plans to have 2,000 LTE sites on air by the end of June 2013 and expects to start receiving Sprint prepayment installments in June 2013.  Clearwire said its full year 2012 CAPEX budget is expected to total $125 to $175 million, as compared to most recently provided guidance of $350 to $400 million.

Clearwire ended Q3 2012 with approximately 10.5 million total subscribers, up 10% from 9.5 million subscribers in third quarter 2011. The subscriber base consists of 1.4 million retail subscribers and 9.1 million wholesale subscribers, reflecting 21,000 retail net subscriber adds and 489,000 wholesale net subscriber losses during third quarter 2012. Wholesale subscribers consist primarily of Sprint 3G/4G smartphone customers.

The company said its spectrum holdings give it a strong position in the market.

"Recent developments in the U.S. wireless industry serve as a direct reminder of the key strategic role deep spectrum resources and a global LTE ecosystem will play in the long-term success of any 4G mobile broadband operator," said Erik Prusch, President and CEO of Clearwire. "Clearwire's unmatched spectrum assets and focus on serving major population centers will be the foundation on which we will build a critical 4G LTE network positioned to serve the needs of the industry and the rapidly growing base of 4G customers across the country."

For Q3 2012, Clearwire posted revenue of $313.9 million, down slightly year over year due to a 15% YoY decline in wholesale revenue.  Q3 wholesale revenue was $116.5 million, -- relatively flat compared to Q2.  Retail and other revenue increased 1% year over year to $197.4 million in third quarter 2012. Retail ARPU for third quarter 2012 was $45.06, representing a decrease of $(1.99) year over year as compared to $47.05 in third quarter 2011 primarily due to lower equipment lease and activation revenue under the new no-contract offering.

Thursday, October 11, 2012

Clearwire Speculation Centers on Spectrum and TD-LTE



Clearwire shares rose 71% on Thursday, as speculation rose that Softbank may bid to acquire the firm. Clearwire is the largest spectrum holder in U.S. and is closely tied with Sprint.

Clearwire operates a nationwide WiMAX network and is planning to make the transition to TD-LTE.  Its main wholesale customer and investor is Sprint, which has extended its 4G agreement through 2015.  The companies have outlined ways of bridging their FD-LTE and TD-LTE networks with dual-mode devices that are under development.  However, Clearwire's CAPEX investments in its network have slowed to a crawl in 2012 as the company conserves cash as it looks for new funding sources.

Revenue in Q2 2012 declined slightly year over year to $316.9 million primarily due to a year over year decline in wholesale revenue. Second quarter 2012 wholesale revenue of $117.6 million, was sequentially flat as compared to first quarter 2012 wholesale revenue of $117.8 million, and down (11)% year over year despite a 50% increase in wholesale usage over the same period.

Some other notes on Clearwire:

  • Clearwire holds the largest spectrum portfolio in the U.S. but in upper bands.  Its spectrum is an average 163 MHz in the top 100  U.S. markets.
  • Clearwire's network at the end of Q2 2012 covered 134 million POPs, about the same as a year earlier.
  • At the end of Q2 2012, Clearwire was serving 9.6 million wholesale subscribers (mostly Sprint) and 1.3 million retail subscribers.  This compares with 6.4 million wholesale and 1.3 million retail subscribers a year earlier.
  • ARPU for Q2 2012 was $46.12 compared with $47.59 a year earlier.
  • Clearwire's CAPEX in Q2 2012 was $24 million
  • Sequans and Qualcomm are key silicon contributors in the TD-LTE ecosystem.
  • China Mobile and Clearwire have agreed to TD-LTE roaming betweeen U.S. and China.

Wednesday, July 18, 2012

China Mobile and Clearwire Advance Plans for Global Roaming on TD-LTE

China Mobile and Clearwire signed a a non-binding memorandum of understanding (MOU) for international roaming between China and the United States using TD-LTE.

The carriers are working on the technical means to support international roaming. The companies also expect this agreement to serve as a blueprint for future roaming agreements with other members of the Global TD-LTE Initiative (GTI) of which China Mobile and Clearwire are founding members.

"We recently demonstrated the roaming capability between Hong Kong FDD LTE and Hang Zhou TD-LTE. With the commercial launches of TD-LTE networks in major markets, these networks shall enable international roaming to create a ubiquitous user experience and a unified market," said Dr. Tiger Lin, Chairman of China Mobile International. "Our goal is to make a converged LTE TDD/FDD market in which our subscribers roam between a TD-LTE network and a LTE FDD network at affordable cost and enjoy the benefit of LTE service globally." 
http://www.clearwire.com 



Wednesday, April 25, 2012

Clearwire Targets TDD-LTE in Hot Zones for 31 Cities

Clearwire will target high demand "hot zones" in major urban centers with its TDD-LTE network.


During the first half of 2013, Clearwire will launch its TDD-LTE network in New York City, San Francisco, Los Angeles, Chicago and Seattle. A total of 31 cities will be targeted.


Clearwire said its advantage will be in leveraging its deep spectrum holdings to commercialize large contiguous swaths of spectrum in a given market. Clearwire believes its LTE Advanced-ready network will further differentiate it as a leader in next-generation 4G mobile broadband.


"Our new 4G network will show that not all LTE networks are created equal," said Erik Prusch, President and CEO of Clearwire. "Clearwire's LTE Advanced-ready network will deploy our deep spectrum resources for the next great era in mobile broadband in which capacity is king. We're positioned to bring much needed capacity on a wholesale basis to address the unbridled demand for mobile data and the scarcity of spectrum in major urban and suburban markets."http://www.clearwire.com
  • In September 2011, China Mobile and Clearwire announced a collaboration to accelerate the development of TD-LTE devices. Specifically, the carriers will work jointly to further accelerate the time-to-market availability of high volume TD-LTE chipsets and devices that should be commercially available starting in 2012. In addition, the two companies will collaborate to enable worldwide data roaming among TD-LTE, FDD-LTE and other 2G/3G networks. Both carriers support the global 2.5 GHz spectrum band for 4G deployments along with many other operators around the world. To date, both China Mobile and Clearwire have conducted successful TD-LTE trials and tests using commercially available/production-ready TD-LTE devices from numerous vendors.


  • In August 2011, Clearwire confirmed its intention to deploy "LTE Advanced-ready" technology in its 4G network while restating its commitment to its existing 4G WiMAX network, which covers approximately 132 million people while serving 7.65 million retail and wholesale customers.

Monday, January 16, 2012

China Mobile and Clearwire to Hold Joint TD-LTE Device Testing

China Mobile and Clearwire, in conjunction with the Global TD-LTE Initiative (GTI), announced an agreement on common test specifications and joint interoperability testing (IOT) for TD-LTE devices in the global band configurations, including 2.3GHz to 2.7GHz. Plans call for establishment of 4G mobile broadband labs featuring a joint test platform and IOT environment for TD-LTE devices. The labs will allow for the evaluation and qualification of commercial TD-LTE devices simultaneously in the U.S., China, and other promising markets, using common testing methodology, equipment, and infrastructure.


The collaboration is expected to accelerate development of the TD-LTE device ecosystem, especially in multi-mode, multi-band LTE devices. The carriers said the expected availability of the Quad-Band LTE 2.3-2.7 GHz spectrum range, in addition to certain other bands like 1.9GHz, as well as FDD and TD-LTE mobility interactions, makes it an ideal global configuration for mass 4G marketing worldwide.


“The unmatched spectrum portfolio underlying Clearwire’s planned LTE network has the potential to deliver faster speeds and with greater capacity than any current or proposed 4G network in the United States,�? said Dr. John Saw, chief technology officer of Clearwire. “Close collaboration with global wireless leader China Mobile accelerates the development of multi-mode multi-band TD-LTE and LTE FDD devices and provides the common test specifications OEMs, ODMs, chipset vendors and other critical component manufacturers need to rapidly develop and commercialize products to serve this massive global marketplace.�?


“Converged with LTE FDD, TD-LTE has become the major global 4G technology for unpaired spectrum,�? said Mr. Li Zhengmao, Vice President of China Mobile. “Our goal is to build efficient, low cost common infrastructure and terminal for different global markets with different spectrum to support mobile internet. By closely working with global operators such as Clearwire, we could leverage the experience, expertise, and scale to achieve this goal. This is also the reason why we create GTI and promote it jointly�?.


Clearwire plans to conduct its TD-LTE common IOT in Phoenix, AZ and Herndon, VA. China Mobile’s testing will be carried out in Beijing and other TD-LTE trial cities.
http://www.clearwire.com
  • In September 2011, China Mobile and Clearwire announced a collaboration to accelerate the development of TD-LTE devices. Specifically, the carriers will work jointly to further accelerate the time-to-market availability of high volume TD-LTE chipsets and devices that should be commercially available starting in 2012. In addition, the two companies will collaborate to enable worldwide data roaming among TD-LTE, FDD-LTE and other 2G/3G networks. Both carriers support the global 2.5 GHz spectrum band for 4G deployments along with many other operators around the world. To date, both China Mobile and Clearwire have conducted successful TD-LTE trials and tests using commercially available/production-ready TD-LTE devices from numerous vendors.


  • In August 2011, Clearwire confirmed its intention to deploy "LTE Advanced-ready" technology in its 4G network while restating its commitment to its existing 4G WiMAX network, which covers approximately 132 million people while serving 7.65 million retail and wholesale customers. The company expects to end 2011 with approximately 10 million 4G customers. Clearwire said the initial LTE deployment will target densely populated, urban areas of its existing 4G markets where current 4G usage demands are high. Clearwire said its LTE network will be "LTE Advanced-ready," meaning that it will use spectrum configurations capable of 100+ Mbps downlink speeds.

See also