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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.
Sprint stops being Clearwire's majority owner
Sprint has declared that it's no longer Clearwire's majority owner in a move designed to shield the carrier should the worst happen to its troubled bedfellow. While Big Yellow is planning to supplement its own LTE network with Clearwire's TD-LTE backbone, it's looked to distance itself on the business side from a company that finds it very hard to make money -- requiring handouts from Sprint just to stay afloat.
Mobile Miscellany: week of June 4th, 2012
Not all mobile news is destined for the front page, but if you're like us and really want to know what's going on, then you've come to the right place. This past week, the LG Optimus L7 and Sony Xperia U both arrived at Fido, and Verizon Wireless unleashed some wicked LTE expansion across the US. These stories and more await after the break. So buy the ticket and take the ride as we explore the "best of the rest" for this week of June 4th, 2012.
FreedomPop iPhone case to offer free 4G connectivity
Earlier this year, FreedomPop said it was working on an iPhone case with an integrated cellular radio that would provide users with free mobile broadband access on Clearwire's 4G WiMAX network. Now, the company is taking pre-orders for this 4G WiMAX sleeve. Each sleeve will cost US$99 and will include 500 MB of free mobile data. This is a drop from the planned 1 GB of data FreedomPop hoped to offer. You can bump up that data by participating in a social service that'll earn you an unspecified amount of data for connecting with your friends. Customers can also transfer unused data to other customers who need the extra capacity. (Note that the company's pre-order page still says "up to 1 GB of free data.") You can read more about the FreedomPop case on the company's website and watch a promotional video about the sleeve in the YouTube video below.
Mobile Miscellany: week of April 23rd, 2012
Not all mobile news is destined for the front page, but if you're like us and really want to know what's going on, then you've come to the right place. This past week, we learned that ZTE intends to release a phablet of its own, and Samsung unseated Nokia as the world's largest supplier of mobile phones. These stories and more await after the break. So buy the ticket and take the ride as we explore the "best of the rest" for this week of April 23rd, 2012.
Clearwire's TDD-LTE rolling out in 'early 2013,' coming to NYC, SF, LA, Chicago, Seattle and more
Clearwire's hardly throwing in the towel after that whole "WiMAX" thing; instead, the outfit has its sights firmly set on bringing TDD-LTE to the masses here in America, starting with an initial rollout in early 2013. A release put out today confirms that New York City, San Francisco, Los Angeles, Chicago and Seattle will be among the 31 cities where the company will launch the aforesaid network, though there's no breakdown on which of those metro markets will be forced to wait until "mid-2013" to get served. Speaking of, Clearwire's making no bones about the fact that "high demand hot zones" will be the ones targeted initially, and in a bid to outshine those LTE networks already live, President and CEO Erik Prusch is suggesting that his firm's 4G network "will show that not all LTE networks are created equal." Bold words, sir.
Sprint will activate LTE on the 800MHz band in 2014
Sprint's Steve Elfman has said that the company's intending to activate an LTE service over its 800MHz spectrum by 2014. Big Yellow's already received 3GPP certification to turn Band 26 into super-fast mobile internet, the only remaining regulatory hurdle left to overcome is a thumbs-up from the FCC. The due date isn't set in stone, as it'll depend entirely on how quickly the company can force current iDEN users to migrate to its CDMA Direct Connect service. Meanwhile, LTE service in Atlanta, Baltimore, Houston, Dallas, Kansas City and San Antonio will activate across next year, with the company confident that it'll be able to keep pace with AT&T and Verizon's services by offloading traffic onto Clearwire's TD-LTE Network which should go live by June 2013. We can only guess that after that the announcement was done, Mr. Elfman looked at a picture of Philip Falcone and had to step outside for a little cry.
FreedomPop plans to give away mobile internet, still make money somehow
"Freemium" mobile broadband outfit FreedomPop has pulled back the curtain on how it plans to make money while giving away 4G internet. In an interview with GigaOm, Marketing VP Tony Miller revealed that once it has got enough consumers hooked on the gratis data, his company will start selling premium features, potentially including a VoIP solution for the network, now supplied by Clearwire after the collapse of LightSquared. The company will also charge a penny for every megabyte used over the free monthly allowance (currently pegged at 1GB) and build a social network where more data can be earned and traded between friends. Alongside the WiMAX shell for the iPhone, we can also expect to see an iPod Touch edition, USB dongle and mobile hotspot arrive before the network's launch. The company doesn't have too long to iron out the kinks in the business plan however, as it'll go live in the third quarter of 2012.
NetZero launches '4G' wireless service, we go hands-on
Remember NetZero? Today the company announced that it's launching NetZero 4G Mobile Broadband, a wireless service rolling out in 80 US cities and offering value-priced monthly data plans without activation fees, contracts, commitments or overage charges. Customers can chose between two levels of service -- Lightspeed (up to 1Mbps down / 384Kbps up) to conserve data and Warpspeed (up to 10Mbps down / 1.5Mbps up) for maximum performance -- and can switch back and forth by simply logging into NetZero's website (this can take up to 15 minutes). Five monthly data plans are available: Free, $0, 200MB (limited to Lightspeed and limited to one year) Basic, $9.95, 500MB (limited to Lightspeed) Plus, $19.95, 1GB Pro, $34.95, 2GB Platinum, $49.95, 4GBTwo devices are offered -- the NetZero 4G Stick ($49.95 + shipping) is a Windows and OS X-compatible USB modem and the NetZero 4G Hotspot ($99.95 + shipping) is an eight device-capable WiFi hotspot with an LCD and a 2,200mAh battery.So far, so good -- NetZero is becoming an MVNO. Yet strangely, there's no mention in any of the PR as to which network the company is using. We test drove NetZero's new wireless service over the weekend using the WiFi hotspot and figured out that it's using Clearwire's WiMAX network. In fact NetZero's 4G Stick is identical to the Clear 4G Mobile USB modem (manufactured by Ubee), and its 4G Hotspot is the same as the Clear Spot Apollo (a rather bulky unit made by Gemtek)-- see the FCC links below and read on for our impressions after the break.
Cricket looks to enhance LTE rollout plan, strikes five-year deal with Clearwire
It looks as if the Big G's plan to offload its Clearwire stake didn't stop Cricket from striking a deal with the Sprint-born network. The five-year agreement allows the underdog wireless carrier to use Clearwire's LTE Advanced-ready waves to aid with its own rollout, which is expected to be fleshing out over the next "two to three years." Similar to that LightsSquared pact from last year, mum's the word on how much cash was involved in the signing. That said, chances are all you care about is how speedy the 4G browsing will be (and how much you can use before getting throttled).
Sprint reveals it spent $15.5 billion to fuel its iPhone hunger
Sprint's SEC filings have revealed that the carrier has committed to purchasing $15.5 billion worth of iPhones as part of the long-promised $20 billion gamble. If each handset costs around $630 at trade, then we're talking about the network holding nearly 24 million units. Given that the company most recently ate a loss of $1.3 billion, most of which was caused by carrier subsidies for the 4S, there's a genuine fear that the company won't be able to make enough back on each customer to offset the initial outlay. Given the Baller-style purchasing decisions of Dan Hesse of late, we'll be watching how this unfolds with great interest and our fingers very firmly crossed.
Sprint raising $2 billion, may throw some dough Clearwire's way
Sprint is looking to sell $2 billion in notes to raise cash, a large chunk of that likely earmarked for network upgrades. The money will come in handy too, as making the leap from WiMAX to LTE won't be cheap. Then, there's its partner Clearwire. After Sprint's board shot down a quest to snatch up MetroPCS, the carrier is even more reliant on the former WiMAX champion -- a company that just saw Google announce plans to dump its shares at a $450 million loss. According to Bloomberg, Sprint may take some of the $2 billion it plans to raise and use it to prop up Clear, which is making the transition to TD-LTE. At this point, we're beginning to think the carrier's cash infusions are the only thing keeping the wireless wholesaler going.
Google plans to sell off stake in Clearwire at a steep loss
It was just under four years ago that Sprint and Clearwire brought together an impressive group of companies as part of a multi-billion dollar partnership to back the WiMAX service provider, but it's safe to say that things haven't quite worked out as planned in the years since. While Clearwire is of course still up and running, its WiMAX-based network has faced an uphill battle against other carriers' LTE-based networks, which even Sprint and Clearwire itself have been switching to. Now one of those partners, Google, has decided to offload its stake in Clearwire at a steep loss. According to an SEC filing, Google will be selling off its shares at a price of $1.60 each, or just over $47 million in all -- that's compared to the $500 million it spent to invest in the company. Not surprisingly, that has caused Clearwire's stock to take a bit of a tumble. As of this writing, shares in the Washington-based company were down almost six percent.
Clearwire says it plans on launching TD-LTE network by June 2013
Clearwire's been promising us that speedy LTE network for quite some time now. The good news is, we may have a clearer view of when to expect the waves to start flowing. During yesterday's Q4 earnings call, CEO Erik Prusch said his company plans on rolling out its LTE tides by June of next year, with the help of 5,000 wave sites around the US and a "longer-term" plan of adding about 3,000 more. The 2.5GHz spectrum will take over the WiMAX regime you've grown to love, and while we're still many handsets and slates away from testing it out, it's something all you Now Network users can happily look forward to.
H2O Bolt promises unlimited 4G internet for $50, pretends it's never heard of Clear
It's not everyday that an MVNO decides to offer up unlimited data courtesy of Clearwire's WiMAX network, but H2O's latest entrant known as Bolt makes us wish the practice were far less frequent. The $50 no-contract service essentially replicates Clear's own offering at the very same price point that's been available to customers for years. Furthermore, both companies share Best Buy as their most significant retail channel. Now, for whatever reason, H2O's Bolt Flash (the $100 USB modem) and Bolt Spider (the $150 mobile hotspot) will sit side-by-side Clear's own offerings at the big box retailer, where it'll be up to those in Smurf shirts to explain the difference -- there's none. You'll find the PR after the break, but if you're living in Detroit, Phoenix, Indianapolis, Louisville, New Orleans, Memphis or Albuquerque, none of this even remotely matters. Frustrating, isn't it?
Clearwire unveils $99 Clear Hub Express and $129 Clear Spot Voyager hotspots
Clearwire's impending LTE rollout isn't going to happen overnight, so why not continue to milk the proverbial cow that is their existing WiMax network? That's exactly what the wireless provider is doing today, with a fresh duo of hotspots. The first, the Clear Hub Express, is a $99 WiFi router-mobile hotspot combo which is destined for home or office duty. The second is the Clear Spot Voyager, which for $124 will hawk WiMax to eight devices for up to six hours of continuous use off its internal rechargeable battery. Those are identical specs to last year's model, the Clear Spot 4G Apollo, albeit sans-screen and in a thinner package. They're available today from Clearwire, and either can be kitted with "unlimited 4G" plans that start at $35 a month. Get acquainted with them in the PR after the break.
Clearwire Q4: revenues up, costs down, LTE expensive
Things are looking up at Clearwire, its Q4 revenue came in just over Wall Street's estimates at $362 million, split between $198 million retail and $164 million wholesale -- with the latter figure up 20 percent over the last quarter. It pointed a finger at increased smartphone usage and slashed operating costs (spending only $82 million) as the reason for the bump. With this being Clearwire, it's still in the business doldrums, relying on handouts from Sprint to keep it going. It's planning to flog off around $300 million of debt to "qualified investors" as a way to ensure sufficient funding for the forthcoming LTE rollout. If you're interested in this sort of thing, you can read the full breakdown after the interval, presumably storming around pretending that you're Gordon Gekko.
Sprint merging consumer and business sales / marketing units, giving four execs the boot
According to a brief report that just went live at Reuters, Sprint is "merging its sales and marketing operations for its business and consumer operations in a streamlining that includes the departure of four top executives." Reportedly, that news was delivered by none other than CEO Dan Hesse himself, who has been in the news a fair amount since 2012 began. Reportedly, the carrier is aiming to "gain efficiencies" in a market where hordes of customers snap up services as individuals, but actually use services tied to "employer-related contractual discounts." Hesse's exact words? "As the wireless market has evolved, the lines between consumers and businesses have blurred." Evidently, they've blurred enough to oust four unnamed bigwigs, too.
