Leap – Clearwire Agreement
In a March 14 announcement, Clearwire Corp. and Leap Wireless subsidiary Cricket Communications Inc. released information on a five-year contract between the companies. The agreement is the second for the Clearwire Long Term Evolution (LTE) network. Sprint Nextel recently signed a similar agreement with Clearwire.
The deal, utilizing the Clearwire “capacity off load service,” will be used to supplement Cricket’s own LTE network. Cricket is reportedly planning to deploy LTE to approximately two-thirds of its present network over the next 24 to 36 months. Cricket service is available nationwide.
In a press release, Erik Prusch, president and CEO of Clearwire said, “The beginning of our long-term wholesale partnership with Cricket is a key step forward in the development of Clearwire’s wholesale LTE business model.”
Fall Out from the SpectrumCo./Verizon Wireless Deal
The industry continues to experience fall-out from Verizon’s recently announced spectrum purchase and joint sales, technology and marketing partnership with the cable industry.
Comcast is moving quickly. While the spectrum sale will likely take up to 12 months to receive regulatory approval, Comcast Cable President Neil Smit announced last week that the cable company will begin bundling Verizon Wireless services in four markets in early 2012. ”The teams are already engaged; they are great commercial arrangements and we think we’ve put together great packages that combine the best of the various bundles,” Smit said, while speaking at a UBS investor conference. Read more
Verizon to Acquire Large Chunk of AWS Spectrum via Cable Companies
Verizon Wireless announced last Friday that it has agreed to pay $3.6 billion to a consortium of cable providers for 122 advanced wireless services (AWS) spectrum licenses covering approximately 259 million people, or more than 85% of the U.S. population.
As part of the purchase agreement with SpectrumCo LLC — a joint venture controlled by Comcast Corp. which includes Time Warner Cable, Inc. and Bright House Networks -– the cable companies will be able to re-sell Verizon Wireless services on a wholesale basis, adding wireless to their service bundles. For its part, Verizon Wireless also will be able to sell the cable companies’ services. It’s unclear at this time if Verizon will choose to market the cable companies’ wired services in areas where is also is the incumbent telco.
Additionally, the cable companies and Verizon Wireless said that they “have formed an innovation technology joint venture for the development of technology to better integrate wireline and wireless products and services.” Read more
What’s Next for Dish? LightSquared?
According to an article published by Bloomberg, Dish Network might partner with or buy its way further into the wireless business. Earlier this year, Dish Network, the nation’s second largest satellite entertainment provider, acquired spectrum in transactions that resulted in the purchase of DBSD America and Terrastar Network. Last month, in a paper filed at the FCC, Dish Network requested permissions to offer mobile high-speed Internet services to its customers.
Speaking with Bloomberg, Dish Network CEO Joseph Clayton said, “We’ll look at partnerships, acquisitions, all of the above,” in response to whether Dish was considering purchasing or partnering with Clearwire or Sprint. He added, “there are several missing pieces, wireless infrastructure, additional technology capabilities and even distribution are pieces that we are working on. Stay tuned.”
This all leads to the question of what Dish’s plans mean for LightSquared, who previously announced a deal with Sprint. Read more
Options for Clearwire?
According to a Bloomberg report, nearly all the parties with a financial interest in Clearwire are discussing just what to do with the wireless broadband provider. Sprint is the majority investor, with Comcast, Time Warner Cable, Cox Communications, Cablevision Systems and Bright House owning minority shares of the venture.
The Bloomberg report indicates that without a funding infusion, Clearwire will be out of money at the end of 2012. Clearwire has announced a plan to role out 4G LTE technology as an overlay of its existing mobile WiMax network. Read more
LightSquared Over the Hump?
As we reported last week, LightSquared had been testing possible remedies to a looming GPS interference problem. Today, LightSquared outlined what the operator is calling a “comprehensive solution” to the interference issues.
As part of its proposed solution, the company will no longer launch its network in a 10 MHz chunk of its spectrum that tests showed caused interference with many GPS receivers. Instead, LightSquared said it recently reached an agreement with Inmarsat, the satellite company that controls an alternative 10 MHz block of spectrum in the L Band, to gain access to a lower spectrum band sooner than it initially anticipated. This new block is located further away from the GPS frequencies.
“Test results show this lower block of frequencies is largely free of interference issues with the exception of a limited number of high precision GPS receivers that are specifically designed to rely on LightSquared’s spectrum,” the company said in its press release.
Further, as part of this revised plan, LightSquared will modify its FCC license to reduce the maximum authorized power of its base-station transmitters by over 50%. This action will limit LightSquared to the power it was authorized to use in 2005.
Clearwire Faces Uncertain Future, Conserves Operating Cash
Despite posting record subscriber and revenue growth in the third quarter, Clearwire disclosed late last week that it may not have enough funding to continue operating its mobile WiMAX business.
“Our expected continued losses from operations and the uncertainty about our ability to obtain sufficient additional capital raises substantial doubt about our ability to continue as a going concern,” Clearwire said November 4 in a filing.
In an effort to conserve cash, Clearwire announced that it is taking a variety of “temporary” measures designed to conserve cash flow, including: Read more



