No spectrum sale this year, Clearwire says

04.05.2011

Last year, Clearwire said it was discussing the possible sale of some of its radio spectrum, one asset that it has in abundance compared with other service providers. One possible customer was believed to be T-Mobile USA, which has since agreed to be acquired by AT&T. But executives on the conference call said they don't expect to sell any spectrum this year.

Such a sale is "something we don't have to consider in 2011," Stanton said. The company's other options for raising money include debt offerings and the sale of stock, he said.

Clearwire will continue to hold back on marketing for its own brand of WiMax service, called Clear, which it began to do last year, executives said. It will cut back on more expensive retail channels, such as stores, and rely more on reaching potential subscribers through telesales and the Web, according to Stanton. The cost for acquiring a retail customer has already been cut by more than 50 percent over the past year, the company said. Still, Clearwire expects continued double-digit growth in retail subscribers and revenue for the rest of this year.

Meanwhile, the company expects a doubling of revenue this year from its wholesale business, a majority of which comes from Sprint subscribers using the WiMax network. Clearwire's top goal is to drive wholesale growth, Stanton said. The recent deal with Sprint, under which the carrier will pay Clearwire based on how much Sprint subscribers use the network, removed .

Sprint and Clearwire are also in discussions regarding Sprint's planned network modernization, according to Stanton. It has spectrum that could help Sprint better serve some urban areas, he said. In February, comments by one Sprint executive , possibly bypassing Clearwire for 4G infrastructure.