On the earnings call (the press release is here) right now… highlights (or not-so-highlights) so far:
– Clearwire reports 12,000 net subscription adds for Q2, down from 25,000 for Q1. Ouch. Execs on the call say this number is good and signups are strong, but no getting around the fact that 12,000 is not a big number. Remember this is all mainly Portland, since Vegas/Atlanta didn’t launch until end of quarter. UPDATE 3: The net adds includes losses from pre-WiMAX subscribers, which may be significant. But since Clearwire won’t break out numbers, hard to tell what Portland growth really is.
– Adds San Antonio, Austin to launch markets list for 2009. We’ll publish the full list but they are saying 25 markets live by year end.
– CEO Bill Morrow says that Q4 subscriber adds will surpass all other 2009 quarters combined — there’s a target to hit!
UPDATE 1, 2 p.m. PST:
– Loss for Q2 is $73.37 million, on revenue of $63.59 million.
– Clearwire spent $251 million on capex in Q2, up from $112 million in Q1. That’s just $363 million in a year where they have planned to spend $1.9 billion. So, lots of towers to pay for in other markets during the second half.
– They will add 800 employees over the next six months… ready your resume!
– Mike Sievert, chief communications officer, is on the call. No Scott Richardson. Marketing over engineering?
UPDATE 2, 2:20 p.m.:
– Stock was up 20 cents at close of market to $8.43 per share, dropped 58 cents to $7.85 in after-hours trading. One to watch tomorrow.
– More on the subscriber numbers… Clearwire CFO David Sach had to audibly stop himself from saying something bad about Q2 numbers, weakly promising that subscriber count “is going to accelerate” for Q3 vs. Q2.
– CEO Morrow says Clearwire probably won’t break out specific 4G subscription numbers (something some of us have asked for before) probably until 2010 at the earliest. Until then apparently it is supposed to be up to us to guess exactly how many “old” pre-WiMAX subscribers are muddying the Clearwire financial reporting waters.
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Sprint Nextel has quietly lowered the monthly service price for its CDMA/mobile WiMAX service from $79.99 per month to $69.99 per month, and is throwing in a free month of service as an extra bonus.
The price cut, outlined by research and consulting firm Current Analysis, comes just a week after the carrier launched mobile WiMAX service in Las Vegas, Atlanta and Portland. Including Baltimore, the carrier now offers its Sprint 4G-branded service, which includes roaming onto its 3G CDMA network, in four markets.
Current Analysis described Sprint’s move as “slightly positive,” adding that the new price “is more palatable to prosumers and consumers during these tough economic times. … These initiatives considerably reduce the cost barriers to adoption, increasing the carrier’s potential consumer base.” The firm also pointed out that Sprint is offering its 3G/4G USB Modem U300 for free with a two-year service contract and $50 mail-in rebate, down from an initial price of $149 in December.
Sprint representatives did not immediately return requests for comment on the price cut.
Sprint’s actions comes just days after Verizon Wireless announced it completed a test of its forthcoming LTE 4G service in Boston and Seattle.
Clearwire, the carrier building the network on which Sprint is selling mobile WiMAX service, said it will offer 4G WiMAX service in more than 25 markets by year-end, reaching approximately 30 million people. Verizon Wireless has said it will commercially launch its LTE 4G network in up to 30 markets in 2010, covering 100 million people.
Related Articles:
Sprint adds two WiMAX routers to its arsenal
Sprint 4G coming to Atlanta in August
Sprint announces 4G rollout schedule
Clearwire adds Huawei to WiMAX supplier list
Clearwire to launch in San Francisco in 2010
I just hope that IT professionals working for small, mid, and large sized companies know…that fixed WiMax like WiBeam USA’s RedLine RedMax gear is not the same thing as a cool laptop card.
Our service is absolutely a solid primary pipe and an awesome redundant link to existing DS3 primaries.
Um, Laz, Sprint wasn’t so quiet about it and we read it first in places other than somewhat currently analyis:
http://www.sidecutreports.com/2009/08/16/sprint-adds-4g-cities-cuts-prices-for-hybrid-card/
And even though the modem was $149 when it came out, it’s been $79 for quite some time now.