Clearwire’s Spectrum Auction Slows
Original link posted on Jan 21, 2011
https://www.goingwimax.com/clearwires-spectrum-auction-slows-12413/
According to unnamed sources, many of the potential suitors for Clearwire’s WiMAX spectrum have lost interest in the sale, generating new worries for the already-troubled company. Clearwire, majority owned by Sprint Nextel, is strapped for cash and needs funding to complete their 4G WiMAX network. The company borrowed enough money to keep it functioning for about a year, some 1.3 billion dollars, but they’re hoping a sale of wireless spectrum could bring in up to 2 billion dollars more, giving Clearwire a strong foundation to move forward.
The main, and some say only, prospect now is T-Mobile USA. T-Mobile execs announced yesterday that they’re looking to build a true 4G network down the road, most likely LTE, but need spectrum-space to work with. With few bands still available, T-Mobile hopes to partner up with another company to build their network. Although Clearwire has a WiMAX network, it’s capable of supporting both 4G technologies simultaneously. Sources say that T-Mobile is also looking into buying spectrum on LightSquared’s network but Clearwire is the frontrunner at the moment.
Clearwire and Sprint are the biggest proponents of WiMAX technology in the US. The other two top carriers, Verizon and AT&T, are rolling out LTE networks this year and T-Mobile just announce an interest in building a LTE network in the next several years. If Clearwire fails to negotiate this tight spot, it might spell the end of the WiMAX – LTE battle, at least in the US, and some fear it could mean lights out for Sprint Nextel as well.