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Google applies for license to build experimental wireless network at Mountain View
Google's learned quite a lot about internet provision through its wired Fiber service, and now it appears to be preparing a localized wireless network. El Goog has solicited the FCC for a license to build an "experimental radio service" at its Mountain View lair, which uses bands that current consumer devices don't. As the WSJ notes, Google's old buddy Clearwire holds the keys to the 2524-2625MHz range it'll occupy, and wireless networks using these frequencies are currently under construction in China, Brazil and Japan. The initial hub for the service is planned to be within the building that houses the Google Fiber team -- perfect fuel for speculation that big G wants to create its own network (possibly in cahoots with Dish), and one that's not confined to its HQ. Right now, it's just a document, so we'll have to wait and see how this develops. Even if it ends up going nowhere, it's not like the search behemoth doesn't have the money to flirt with whatever it wants.
Dish wants FCC to freeze its review of SoftBank's Sprint deal
If you ran Dish, how would you get extra leverage when fighting Sprint for control of Clearwire? Try to put SoftBank's acquisition of Sprint on ice, that's how. The satellite TV provider has asked the FCC to pause its review process over "unresolved contingencies" with Sprint's proposed buyout of Clearwire. Among the concerns, Dish warns that Sprint might not get full control of Clearwire or its spectrum, skewing the final value of the takeover, and that approval of the SoftBank-Sprint union might give the combined entity an unfair edge. Dish also makes a case for preserving wireless competition, but the company is still fairly conspicuous in its ultimate aims -- it wants a better shot at buying Clearwire, or at least to eke some LTE-friendly spectrum out of Sprint before SoftBank can move in. Just filing a request isn't a guarantee of action, however, and it's likely that Sprint will push back against any attempts to derail what's likely its deal of the decade.
Dish Network makes an offer to buy Clearwire, even though Sprint was already buying Clearwire
Surprise news this afternoon as Clearwire announced it's received an acquisition offer from Dish Network, even though Sprint was already on the hook to snap up the company for $2.2 billion. According to the press release (included after the break), a special committee of the Clearwire Board of Director's has decided to negotiate with dish based on its proposal, although it has not changed its recommendation of the current Sprint transaction. Predictably, Sprint is not taking the news well, producing a series of bullet points (also in the release) about why Clearwire can't and / or shouldn't sell to Dish. Dish's statement is short and to the point, only saying it looks forward to working with the special committee as they evaluate its proposal. Of course, since Dish is offering $3.30 per share and Sprint is offering $2.97 one can see why the board is mulling it over, but all we know for now is that the "definitive agreement" with Sprint... wasn't.
Sprint confirms it's buying the rest of Clearwire for $2.2 billion
Sprint has just announced that it has entered into a "definitive agreement" to buy the 50 percent stake of Clearwire it doesn't already own. The transaction, worth $2.2 billion, is $100 million higher than the original offer House Hesse had made, once rumors of the deal had pushed Clearwire's share price up. While the deal is contingent upon the legal nuts-and-bolts of the Sprint-Softbank merger going through, the Japanese company has already given its blessing to the deal. Big Yellow has also garnered support from Clearwire's big-ticket minority shareholders, including Comcast, Intel and BrightHouse Networks. As part of the deal, Sprint will take on Clearwire's $5.5 billion in debt and licensing obligations, as well as coughing up a further $800 million in investment for the constantly-ailing network provider. If it meets regulatory approval, then the deal will complete in 2013, and never again will Dan Hesse have to have that dream nightmare about LightSquared.
Sprint makes formal offer of $2.1 billion to acquire Clearwire
Sprint Nextel has just put a $2.1 billion offer on the table to fully purchase wireless provider Clearwire, verifying recent reports of "active negotiations" between the two. The network already owns a majority stake, but would like complete control of the company (and its spectrum), including roughly 12.4 percent collectively held by Intel and Comcast. However, Japanese carrier Softbank, which wants to buy 70 percent of Sprint, needs to clear the offer before it's truly official. Sprint said in a regulatory filing that the Clearwire deal also hinges on Softbank's purchase going through (expected March or April next year), so there are still a few boxes that need ticking before any formal acquisition process can begin.
FreedomPop brings free wireless internet to the home with Hub Burst modem and router
If you happen to live in an area that's served by Clearwire's WiMAX network, then you may be interested to learn of a new home internet service that's very aggressive on the pricing front. FreedomPop has announced a free broadband service that'll offer 1GB of data consumption per month. Not to stop there, heavier users can sign up for a $9.99 monthly subscription that provides 10GB of data usage, or take advantage of a pay-as-you-go option that costs $0.005 per megabyte ($5/GB). Also of note, free users will be able to earn additional data by engaging friends and participating in promotions. FreedomPop's service will launch in conjunction with the Hub Burst, a 4G modem and router that costs $89, which is available for pre-order now and is set to ship next month. The Hub Burst offers two Ethernet jacks -- useful for your desktop or home entertainment setup -- along with support for 802.11b/g/n (WiFi). While WiMAX is a bit pokey by modern standards, if you're looking to lighten your monthly bills, this alternative to Clear and NetZero may be the ticket, indeed.
Sprint reportedly in talks to purchase remaining Clearwire stake
Sprint's situation continues to get even more complicated, as it's being reported by CNBC that the Now Network is currently in "active negotiations" to acquire the remaining half of Clearwire, just two months after it took 51 percent stake in the company and had 70 percent of its own entity acquired by Softbank. That said, there is no guarantee that this particular buyout will occur, as the deal will have to get the Japanese carrier's blessing before proceeding. According to the all-knowing "people familiar with the matter," Sprint's vision in fully acquiring the company is to add Clearwire's spectrum to its own. It aims to close the deal around the same time the Softbank deal is finalized, which both companies are hoping will take place in March or April.
Hands on with FreedomPop's free data for your iPad and iPod touch
FreedomPop's free data pitch is aimed at the thrifty consumer: put down a refundable deposit on a USB dongle or MiFi-style router (iPod touch cases are also an option) and receive a monthly 500 MB bandwidth stipend for life. For free. If it sounds too good to be true, well, it might be. But before I get to that, let me give you a general idea of where FreedomPop is coming from. Plans FreedomPop is currently a Clearwire 4G WiMAX rebundler (they will be moving to Sprint in 2013). You can use FreedomPop's equipment in any area that Clear currently services. You choose from three plans: Free 500 MB - US$0/month for the first 500 MB and then $0.02/MB after. That's $20.00/GB. This is the bottom feeder plan that many consumers will choose. Casual 2 GB - $18/month ("for a limited time") for the first 2 GB, and then $0.01/MB after, or $10/GB. Premiere 4 GB - $29/month ("for a limited time") for the first 4 GB, and then $0.01/MB after, the same $10/GB as Casual. Leaving family plan sharing aside, the Casual and Premiere data compare well to major carriers. AT&T's 250 MB/month plan costs $15 and $30 for 3 GB. Sprint offers 300 MB/month for $15 and 3 GB for $35. Verizon's offerings include 1 GB for $20 and 2 GB for $30. As you can see, FreedomPop's paid plans are competitive. What's more you can share this data among multiple devices if you select the Freedom Spot hotspot. It supports up to 8 devices at once, and offers up to 6 hours of use according to FreedomPop's marketing text. Penny Pinching Data Usage My concerns surround the Free 500MB plan. I suspect most users will choose this plan. I don't see how this loss-leader approach readily extends towards a revenue stream to ensure the company's health and longevity. That's because frugal users will likely disable FreedomPop's automatic top-off feature. In its default configuration, user accounts for the free plan auto-renew to paid $20 top-offs after 400 MB of bandwidth is used. Users can easily switch this feature off. (Set Billing > Billing Settings > Automatic Top Up > Enabled to No.) So where else can FreedomPop earn from its free users? It provides a low-rent data-for-completed-offers program. Sign up for clubs, mailing lists, surveys, etc. and FreedomPop extends your free data with one-time boosts. I honestly think users would probably prefer to pay $5 or $10 a month for the same 500 MB data plan and ensure the company's long-term health than see it try to make a go of it with this kind of low-end "sell your consumer information" approach. That's because unbundled data is a precious commodity, and one that's hard to find frugal solutions for. Ever since AT&T killed their data feature plans back in April, it's been something that many users have done without. As a point of comparison, Clear's unlimited data plans cost $35 and $50 for basic home and mobile use. These provide excellent alternatives for the high-end data consumer. It's the low-use, on-the-go consumer, who lives in areas with plentiful Wi-Fi who struggles to find an affordable solution for filling coverage gaps. Tony Miller, FreedomPop's marketing VP, has given hints that the company will try to build additional revenue streams by adding services like VoIP. I'm not convinced that this will work. Performance It's not hard to beat AT&T's 3G (aka "4G") data service if you live in Denver. As you can see from the SpeedTest.net screencap that follows, AT&T's service is just awful. And yes, I live in a supported area. Interestingly enough, I live outside the supported Clear zone. I'm in one of their "partially covered" rather than fully covered locations. (This translates to light green vs dark green on their service map.) FreedomPop's Clear-powered WiMAX data absolutely smokes AT&T, both at home and around town. Here's a typical test from my iPad, when connected through the Freedom Spot. Be aware that each test consumes a fair portion of your monthly allowance, so you don't want to be running many of these tests unless you're doing a write-up for a blog. Steve Sande, who lives about 10 miles south of me, uses Verizon on his 3G iPad. He regularly sees data numbers equal to or better than these while around Denver. Steve is in the middle of changing his iPhone AT&T service to Verizon for exactly these reasons. I may follow next year, when my current AT&T contract is up. FreedomPop will be switching from Clear's WiMAX network to Sprint's LTE next year. Conclusions As much as I love the budget data FreedomPop is offering, I do have concerns about the company's long-term health. Their low-end Free plan doesn't seem fully thought out to me. If you sign up, keep that in mind. At the same time, I've developed respect for Clear -- a service I never had an opportunity to test before. A quick Google search revealed mixed experiences with Clear customer support, but after this test, it's a service I'd consider using. I think it might work particularly as an alternative to my current iPhone-as-primary-data-consumer lifestyle, especially now that Apple offers the iPad mini. I'm holding onto the FreedomPop for a while, to continue testing. Here's hoping the company can make it work. I'm just not convinced it can.
Clearwire moves forward with Huawei in network upgrades after federal consultation
China's Huawei has found itself followed by a cloud of suspicion from governments and national security agencies, both in America, and further afield. A recent announcement from Clearwire stating it will use the firms hardware in a network upgrade, however, could see some sunshine of confidence finally poking through. Reuters reports that the service provider consulted several technical departments from various federal agencies before making the decision. Clearwire already uses some Huawei equipment in its infrastructure, and it's in these areas that the hardware will be used for upgrades. The firm went on to assure that, overall, less than 5 percent of its LTE budget involves Huawei gear, and irrespective of origin, all vendors are subject to approval from US government approved third parties.
Clearwire sees wholesale revenues dip, LTE delays as it posts a $41.3 million net loss in Q3
Clearwire's figures show that the network it isn't cool to love will be making placating faces at its bank manager for yet another quarter. It pulled in revenues of $313.9 million for the three month period, but with business costs (and depreciation) clocking in at $646.7 million, the company posted an operating loss of $332 million and a net loss of $41.3 million. If that wasn't bad enough, it's also hacked back a target to add TD-LTE to 5,000 sites before mid-2013 to just 2,000. A similar problem has occurred over at newly-minted majority owner Sprint, which has found itself a quarter behind its own LTE timetable thanks to parts shortages -- so let's hope the folks over at Softbank can help both companies improve their estimating skills.
Sprint sells 1.5 million iPhones, 1 million other smartphones, but makes a net loss of $767 million
Sprint's latest financials show that while the network is slowly stemming the flow of cash from its veins, it's not quite there in terms of turning a profit. The country's third biggest carrier suffered a $767 million net loss and an operating loss of $231 million -- much less than the $629 million operating loss it had in Q2, but on-par with the $208 million lost in the same period last year. The business did manage to bring in total revenues of $8.8 billion, but had to take a hit on a $397 million write-down on costs related to Network Vision and the continued pain of the Nextel shutdown. On the customer size, it added a further 900,000 users, sold 1.5 million iPhones and a further 1 million "LTE smartphones" in the quarter. Those with long memories will know that the company sold the same number of Apple handsets in the last two quarters, with around 40 percent going to new customers then as now. However, churn, the deadly enemy of all carriers, increased to 1.88 percent, up from 1.69 percent in Q2. The network did manage to coax 59 percent of former Nextel customers to stay tied up with Big Yellow, which may account for it selling nearly 1.2 million Direct Connect devices. While it's hardly a rosy estimation of Sprint's financial health, this report doesn't take into account Softbank's $20.1 billion buy-out or the regained controlling stake in Clearwire -- so we're expecting the next financial announcement to contain some more exciting news. Update: During the conference call, Dan Hesse was asked about adopting a shared data plan to rival Verizon and AT&T, but unlike the last call, he was dismissive of the idea.
Sprint Nextel takes control of Clearwire after increasing stake to 50.8 percent
A securities filing has just revealed that Sprint Nextel has acquired 50.8 percent of Clearwire Corp giving it control of the firm. The deal comes after buying out Eagle River Holdings' stake in the telco. This comes just days after Sprint was subject to a sale of its own, to Japanese operator Softbank. The news is the latest twist in the up and down relationship between the two firms, and hints at a more assertive LTE strategy -- given that it now has more say over Clearwire's spectrum. Although it remains unclear how this will affect deals with other operators. If you really want to get in to the nitty-gritty, head on down to the Securities and Exchange Commission doc in the source link below. [Thanks, James K]
Clearwire starts building LTE network this month, wants to salve (and profit from) Sprint growing pains
Clearwire doesn't have much time left before its promised LTE rollout goes live in early 2013, so it's with some relief that we know the deployment is getting underway. CFO Hope Cochran told those at Goldman Sachs' Communacopia Conference this week that construction of the first cell sites starts this month, with efforts truly swinging into full gear during the fall. The executive also reminded us of a very pragmatic reason why many of the 5,000 LTE sites due by June 30th will target high-traffic areas -- as Clearwire is only selling the faster data access to other providers, it should pocket more money in any regions where Sprint needs all the help it can get. Call it a virtuous cycle. Cochran certainly does: while Clearwire is free to make deals with others, Cochran says her company weighs any alliances against what it still considers a very special pact with Sprint. No doubt the 4G pioneer is hoping that it's making the right choices, as other carriers aren't waiting around.
Time Warner Cable abandons wireless business plans, sells 7.2 percent Clearwire stake
Time Warner Cable has decided against entering the wireless business, and as such, it's selling the 7.2 percent stake in Clearwire it picked up in 2008. Thanks to the dwindling value of the network provider, it's $550 million investment is now only worth around $73 million. Current investors have first refusal on the shares, but it's unlikely to find takers quickly, given that both Intel and Google dumped their interests at a steep loss and even Sprint has ceased to be its majority owner -- although the company itself did tell The Wall Street Journal that it's doing perfectly fine, but thanked it for asking, before quickly dashing off to "a thing."
EarthLink inks deal with Clearwire to use its 4G WiMAX network
EarthLink has been laying low since its Philly-wide WiFi project failed all those years ago, but now it's back in the limelight with Clearwire's 4G network under-arm. The companies have struck a deal for EarthLink to access Clearwire's WiMAX infrastructure, initially to offer wireless, in-home broadband. This is expected to launch in early 2013, with mobile and small business markets being future goals. An LTE network is also in the pipeline, don't forget, and when it goes live, EarthLink is likely to expand the agreement to cover it. The ISP is obviously putting its eggs in the 4G basket, because no one wants wires anymore, do they?
Rural Cellular Association rebrands as Competitive Carriers Association, mirrors its move to the big city
What's in a name? Quite a bit, if you ask the Rural Cellular Association. It's becoming the Competitive Carriers Association to reflect a membership shift from smaller providers that often serve the countryside to a much more urbane roster that includes Clearwire, Sprint and T-Mobile, on top of grown-up existing members. Not surprisingly given the advocacy group's recent bedfellows, the name switch also emphasizes the attempt to resist a consolidation of power in US telecom -- CCA membership is limited to carriers with under 80 million subscribers, which conveniently excludes heavyweights AT&T and Verizon. Although rebranding is a symbolic gesture first and foremost, the group is no doubt hoping the name will make its intentions clearer the next time a big spectrum swap rolls around.
Dish Network rumored to have bought Clearwire's $400 million debt in secret transaction
We're not in the habit of entering the dry world of corporate debt notes, but Sprint's latest financial release might disguise a juicy bit of news. There's a rumor in the business press that Dish Network might have bought around $400 million of Clearwire's debt -- helping relieve the pressure on Sprint, which has been keeping its subsidiary alive on handouts. Unsurprisingly, no-one's commenting on the rumors, although Dish CEO Joseph Clayton did say he was open to a partnership (or acquisition) with Sprint / Clearwire late last year. If true, it could signal that it's getting ready for a fight against AT&T -- or maybe it just wanted to throw Dan Hesse a bone.
Sprint's iPhone gamble isn't paying off as 2012 Q2 figures reveal $629 million operating loss
Sprint's second quarter figures have arrived, showing that the company's billion-dollar gamble on the iPhone isn't working right now. While it sold 1.5 million Apple-branded handsets in the three month period (40 percent to new and postpaid customers), it recorded an operating loss of $629 million and a colossal net loss of $1.4 billion -- compared to an operating loss of $255 million and a net loss of $863 million in the first quarter. Operating revenues of $8.8 billion improved on those in the first quarter by a single percent -- mostly due to higher service fees from its wireless offerings. It's also grown its cash reserves, up from $128 million last quarter to $267 million today, and can point to 442,000 postpaid and 141,000 new prepaid subscribers pushing the company's customer base up to 56 million nationwide -- mentioning that 60 percent of former Nextel users chose to remain with Sprint during the enforced change. The figures reveal that Sprint's eating around $782 million due to the shutdown of the Nextel platform and a further $184 million to end leases on antenna sites for the moribund network. It's also having to take a hit of $204 million due to its investment into infrastructure partner Clearwire. It's affirmed its $1 billion lending facility, contingent upon purchasing gear from Ericsson to help build its LTE network, which it aims to have installed in 12,000 sites by the end of the year. Of course, that purchase was prompted by the collapse of Philip Falcone's doomed LightSquared project, which caused the Now Network to lose $66 million in cash and its childhood innocence when it comes to trusting other people. Update: Big Yellow also mentioned that it has no plans to adopt a shared data plan to follow AT&T and Verizon.
FreedomPop jumping from WiMAX to LTE by year's end, iPhone sleeves intact
Followers of FreedomPop's saga have seen the fledgling data-only provider make a few audacious claims: providing free bandwidth, for one, and basing its 4G device lineup as much on iPhone sleeve cases as on traditional access points. Add another one to the list -- the MVNO is planning to switch from Clearwire's WiMAX network to Sprint's LTE before 2012 is over. While FreedomPop is still planning to go forward with WiMAX for the initial deployment, it's now looking to use tri-mode EV-DO, LTE and WiMAX modems and phone cases just months later. We'll see if that leads to existing iPhone 4 and 4S owners getting an LTE fix without having to spring for a new phone; marketing VP Tony Miller wouldn't tell GigaOM more. Either way, it's a mixed blessing for data addicts that might find themselves crashing that much faster through the 500MB regular cap on free data.
Karma rewards WiMAX subscribers for sharing their 4G
Normally, we associate Karma with religion, or if we're honest, luxury hybrid sedans. A company by the same name would rather you make that connection with WiMAX Internet service. Much like a 4G version of FON, subscribers to the Clearwire-rooted network are required to share their Internet link-ups with the public as a WiFi hotspot. As the name suggests, though, sharing the connection ideally pays back dividends through free access: for every guest who signs in on Facebook to get 100MB of free data through the hotspot, another 100MB goes towards the hotspot owner. If all goes well, the Karma user creates a virtuous circle (pun entirely intended) and pays little if anything for Internet access; while the WiMAX hotspot costs $69, the $14 per gigabyte rate only kicks in if the credit runs out. Trial runs are starting in New York City and might only hit 500 hotspots by the end of 2012, but the hope is to upturn the wider industry and make sure there's never a shortage of public WiFi.