Forum Views ()
Forum Replies ()
Read more with google mobile :
Sprint pledges Clearwire $1 billion wholesale fees
|
Edition:
U.S.
Article
Comments (0)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Republicans attack Trump as he mulls 2012 run
2:21pm EDT
Trump: My tax returns for Obama birth certificate
2:58pm EDT
Governor vetoes birther, campus gun bills
10:37am EDT
Republicans attack Donald Trump as he mulls 2012 run
3:18pm EDT
RIM launches PlayBook, fans don't play along
2:42pm EDT
Discussed
92
Palin returns with feisty, anti-establishment speech
83
Obama to lay out deficit plan with focus on tax, spending
74
UPDATE 1-Geithner says Congress will pass debt limit increase
Watched
VW unveils new sporty Beetle
Mon, Apr 18 2011
Cupless bra combats cleavage crinkle
Fri, Apr 15 2011
South Korean "super gun" packs hi-tech killing power
Mon, Feb 14 2011
SMALL BUSINESS
Patent battle hits Supreme Court
A small Canadian firm's record $290-million patent victory over software giant Microsoft rests in the hands of the Supreme Court. Down to its final appeal, Microsoft argued a lower standard should be used, which could make some patents more vulnerable to legal challenge. Full Article | Video
Microsoft-i4i fight has big patent implications
A decade later i4i's battle with Microsoft nears finale
Sprint pledges Clearwire $1 billion wholesale fees
Tweet
Share this
By Sinead Carew
NEW YORK (Reuters) - Clearwire Corp and its majority owner Sprint Nextel Corp reached a new wholesale pricing deal that has Sprint paying at least $1 billion to Clearwire between this year and the end of next year.
But shares of...
Email
Print
Factbox
Factbox: Environment, high-speed rail hit in budget deal
Wed, Apr 13 2011
Related News
Sprint CEO blasts AT&T/T-Mobile mega-deal
Fri, Apr 15 2011
UPDATE 2-Sprint CEO blasts AT&T/T-Mobile mega-deal
Fri, Apr 15 2011
Shares of chip maker Sequans fall in NYSE debut
Fri, Apr 15 2011
Germany's Bahn and Siemens reach train order deal-sources
Thu, Apr 14 2011
Analysis & Opinion
How the economy may undermine Obama’s 2012 reelection hopes
Welcome to MuniLand
Related Topics
Technology »
Hot Stocks »
Asian Markets »
Media »
Stocks
By Sinead Carew
NEW YORK |
Tue Apr 19, 2011 11:47am EDT
NEW YORK (Reuters) - Clearwire Corp and its majority owner Sprint Nextel Corp reached a new wholesale pricing deal that has Sprint paying at least $1 billion to Clearwire between this year and the end of next year.
But shares of Clearwire fell as much as 7 percent as investors were unimpressed with the pact, which ended months of disputes over how much Sprint pays to rent space on Clearwire's network to sell Sprint-branded high-speed wireless services.
The pair had signaled last month that a pricing deal was imminent. But some investors hoped it would come with a new equity investment from Sprint, according to at least one analyst. Sprint is a 54 percent owner of cash-strapped Clearwire.
Clearwire still needs billions of dollars in funding if it is to finish building its high-speed network.
Despite the new agreement, John Stanton, Clearwire's interim chief executive who is also chairman, said the company would have to keep looking for new ways to cut costs.
The disagreement with Sprint has been cutting in to Clearwire's revenue, so Stanton said the new commitment would help Clearwire fund operations and look at network expansion.
"That is a real positive in terms of our ability to fund our operating expenses and to be able to look at expansion," he told Reuters in an interview. "To me it's a bit of a template for further work."
Stanton would not give specifics about the company's network expansion plans except to say that they would involve another more advanced high-speed wireless technology as well as WiMax, Clearwire's current technology.
He said that Clearwire is also talking to Sprint about whether the companies would enter a network sharing agreement as part of an upgrade Sprint is planning for its own network.
Stanton added that Clearwire would go to cable partners including Comcast Corp and Time Warner Cable offering them similar terms to the Sprint deal.
The companies said on Tuesday that the agreement involves minimum payments from Sprint of $300 million in 2011, $550 million in 2012 and $175 million in prepayments for high-speed services to be used in 2011, 2012 and beyond.
This will mean a big increase to Clearwire's 2010 wholesale revenue of $50 million.
But investors wanted a clearer indication that this was a good deal for Clearwire as the companies did not reveal how much network usage the announced payments would cover, said Mizuho analyst Michael Nelson.
However, he noted it was premature to conclude that the deal was a sign that Sprint would not provide any more funding.
"I don't think it precludes Sprint from investing extra capital," Nelson said.
Clearwire shares pared some losses to trade down 3.1 percent at $5.60 late on Tuesday morning, off an earlier low at $5.35. Sprint shares were up 2 percent at $4.79.
(Reporting by Sinead Carew; editing by Gerald E. McCormick and Matthew Lewis)
Technology
Hot Stocks
Asian Markets
Media
Tweet this
Share this
Link this
Digg this
Email
Reprints
We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Social Stream (What's this?)
© Copyright 2011 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Analyst Research
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Super Lawyers Attorney Rating Service
Reuters on Facebook
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Wednesday, 20 April 2011 Cuban communists opt for old guard to lead reforms
|
Killers of Italian activist die in Gaza raid
|
Bodies in streets after Nigeria election riots
|
Egypt used excessive force to quell protests: report
|
Yemen police kill 3 as protests escalate
|
Bahrain arrests more doctors, opposition says
|
France signals new openness on Muslim groups abroad
|
RIM launches PlayBook, fans don't play along
|
Sony Ericsson battles for parts after Japan quake
|
Royal Wedding to be streamed live on internet
|
Apple sues Samsung, says stop copying us
|
Ebook seller Kobo closes C$50 million investment round
|
Tablet market seen surging to $49 billion by 2015
|
Sprint pledges Clearwire $1 billion wholesale fees
|
Seagate buys Samsung hard disk unit
|
Japan woes force scrutiny of Apple's margins
|
Seasoned users shun spontaneity on the Web: survey
|
Charlie Sheen loses custody battle for kids: reports
|
Demi Lovato quits Disney TV show, talks of bulimia
|
Reese Witherspoon riding high in circus drama
|
Royal Wedding to be streamed live on internet
|
Flash mobs, rapping record mark first O Music Awards
|
Kara DioGuardi says she was molested, date-raped
|
Republicans attack Donald Trump as he mulls 2012 run
|
U.N. says 20 children killed in Misrata
|
Slap that was heard across Arab world didn't happen
|
Yemen police kill 3 as protests escalate
|
Japan eyes sales tax rise to pay for post-quake rebuild
|
Apple to begin shipping new iPhone in September
|
Japan may cloud another stellar Apple quarter
|
Motorola pushes Bionic launch to summer
|
Obama takes tax plan to Facebook billionaires
|
Intel and VMWare give downtrodden tech sector a lift
|
RIM launches PlayBook but fans don't play along
|
Toshiba jumps on report chosen by Apple for small LCDs, Sharp
|
Royal Wedding to be streamed live on internet
|
Yahoo earnings top target, shares up 3.5 percent
|
Threats against Web sensation Rebecca Black probed
|
Fox to punish leaks after Glee spoiler
|
Doctor Who actress Elisabeth Sladen dies at 63
|
Actor Jeff Bridges to release album in summer
|
Isla Fisher in talks to join Great Gatsby
|
Happy Days actors sue over merchandising revenue
|
Syria removes police chief of restive city
|
Pakistan's ISI links with Haqqani militants: U.S.
|
Ivorian forces move to stamp out Gbagbo stronghold
|
Man shot dead in Kurd protests over Turkey poll ban
|
Putin warns Russia against economic complacency
|
Hundreds arrested after deadly riots in north Nigeria
|
Killers of Italian activist die in Gaza raid: Hamas
|
Apple to ship new iPhone in September: sources
|
Japan may cloud another stellar Apple quarter
|
AT&T weathers iPhone exclusivity loss
|
Amazon to allow library lending of Kindle books
|
EBay to buy local ad provider Where
|
Governments struggle to recruit, keep cyber warriors
|
Anti-bomb plan for Pentagon annex posted online
|
Obama takes tax plan to Facebook billionaires
|
Children's Place says customer database hacked
|
Putin says no plans to crack down on Internet
|
Jeff Bridges to release album in summer
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights