Committee Launches Investigation into RUS Loan to Open Range
Posted by Jesse Ward on Monday, November 14, 2011 · 
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On October 9, the House Energy and Commerce Committee launched an investigation into the U.S. Department of Agriculture’s $267 million loan to Open Range Communications, which filed for bankruptcy protection in early October.
Six bipartisan members of the committee sent a letter to Rural Utilities Service Administrator Jonathan Adelstein requesting the firm’s complete loan application and any documents related to the decision to approve it. The current balance of Open Range’s loan — the largest made to rural broadband providers between 2002 and 2008 — is $73.5 million.
The letter also notes refers to concerns from the Agriculture Department’s inspector general about the oversight of broadband loan programs in light of the fact that $340 million had been paid out despite “incomplete applications, loans that defaulted, and grant funds used for inappropriate purposes.” Read more
WiMAX Provider Open Range Files for Chapter 11
Posted by Jesse Ward on Friday, October 7, 2011 · ·
This morning rural WiMAX provider Open Range Communications announced on its website that it has filed for bankruptcy. According to media reports, Open Range laid off most of its employees yesterday morning and is now relying on a skeleton crew based out of its headquarters in Greenwood Village, Colo. Further, the company’s CEO Bill Beans resigned; the company’s CFO Chris Edwards appears to be leading the company now. Also according to media reports, Open Range will stop accepting new customers, however it will continue providing service to existing customers.
As the New Edge first reported back in 2009, Open Range obtained a $267-million loan from the U.S. Department of Agriculture’s Rural Development Utilities Program (from the traditional telecom program, not a stimulus loan) to deliver portable and eventually mobile voice and Internet services. The company also received another $100 million in private financing from an arm of J.P. Morgan Chase.
Open Range initially planned to offer WiMAX service to 546 communities across 17 states, serving six million people by 2014. However, Open Range now serves 140 markets spanning more than 12 states and 20,000 subscribers, according to the Denver Business Journal. Read more
Options for Clearwire?
Posted by Steve Fravel on Monday, August 22, 2011 · ·
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
Clearwire Faces Uncertain Future, Conserves Operating Cash
Posted by Jesse Ward on Monday, November 8, 2010 · (1) ·
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
Clearwire and Sprint to Launch WiMAX Service in Big Cities
Posted by Jesse Ward on Monday, October 25, 2010 · ·
Clearwire Corp and Sprint announced last week that they will launch 4G mobile Internet services in New York, Los Angeles and San Francisco later this year. Services will be launched by Clearwire under its “Clear” brand and by Sprint which owns a majority stake in Clearwire. In New York service also will be offered by Time Warner Cable and in San Francisco by Comcast.
Subscribers will be able to purchase a wide range of devices, including USB modems, Intel-embedded WiMAX laptops and netbooks, portable Wi-Fi/4G hotspots and other wireless devices, all aimed at making subscribers more mobile and efficient. Each company plans to offer dual-mode 3G/4G devices which will utilize Clearwire’s WiMAX network when in range and leverage Sprint’s 3G network where 4G service is not available. Comcast said that its4G service, branded XFINITY Internet 2go, is sold as part of a Fast Pack that bundles in-home wired Internet with the 4G wireless service. Read more
Clearwire Launches Pay-as-you-go WiMAX Service
Posted by Jesse Ward on Monday, August 30, 2010 · ·
Clearwire today unveiled Rover, a new pay-as-you-go mobile broadband service which utilizes the company’s WiMAX network. The service is targeted at tech-savvy Generation Y customers between the ages of 18-24, and is priced at $5/day, $20/week, or $50/month for unlimited usage.
To use the service the customer will need to purchase a Rover Stick, a $99.99 4G USB modem to use with his/her computer, or a RoverPuck, a $149.99 portable WiFi hotspot that lets the user share broadband access with up to eight devices.
Rover is available in Clearwire’s 49 WiMAX markets nationwide. Users will not be able to roam to 3G networks when traveling to other areas where the 4G service is unavailable.
Although the Rover service is not yet available to Clearwire’s wholesale partners such as Comcast, Sprint, Time Warner Cable and Bright House, the company is interested in expanding its availability.
Read more
Motorola Selects Eden Rock for Rural WiMAX Integrator
Posted by Jesse Ward on Thursday, August 5, 2010 · ·
Motorola has selected Eden Rock Communications to serve as a system integrator for its WiMAX end-to-end, low teledensity (i.e. rural) solutions. Eden Rock will provide system engineering services, integration and testing.
“Motorola’s WiMAX low teledensity solution offers small operators the opportunity to take advantage of the same benefits that larger WiMAX operators have realized for quite some time,” said Chaz Immendorf, president and CEO of Eden Rock Communications. “The services offered by Eden Rock enable smaller operators to create their own ‘virtual 4G technology team,’ leveraging the same support resources as some of Motorola’s largest WiMAX customers.”
Motorola first announced its low-density WiMAX solution back in February. The product line includes a gateway which can serve 24,000 subscribers or fewer and easily scale for larger deployments, and plug-and-play customer premises equipment that Motorola says is designed for “price-sensitive” consumers. Read more