Clearwire

Clearwire Corporation was a telecommunications operator focused on mobile and fixed wireless broadband. Its business developed from a late-1990s venture using educational and other licensed spectrum into a major U.S. wireless broadband network operator. The company served retail customers directly and also supplied wholesale network capacity to partners including Sprint, Comcast and Time Warner Cable. Clearwire’s roots date to 1998, when Sierra Technologies spun off assets into a new business initially known as Clearwire, Inc. and later Clearwire Technologies. The company pursued wireless broadband using spectrum in the 2.5 GHz range, including spectrum associated with the Educational Broadband Service. In the early 2000s, Craig McCaw acquired the company’s parent through his investment vehicle Flux LLC and subsequently installed executives associated with McCaw Cellular. Clearwire also drew on technology from NextNet Wireless, another McCaw-related company. The company raised substantial strategic capital as the wireless industry began pursuing WiMAX as an alternative to conventional cellular broadband. Intel and Motorola invested approximately $900 million in 2006, while NextNet Wireless was sold to Motorola as part of the transaction. Clearwire went public on Nasdaq in March 2007 under the ticker CLWR, raising approximately $600 million in its initial offering. A decisive turning point came in 2008, when Clearwire agreed to combine its network with Sprint Nextel’s Xohm WiMAX business. The resulting venture used Clearwire’s infrastructure and Sprint’s wireless assets, supported by investment from Comcast, Time Warner Cable, Intel, Google and Bright House Networks. Retail 4G services were generally marketed under the CLEAR name, while Sprint and cable companies resold access under their own brands. Clearwire launched its first major WiMAX market in Portland, Oregon, in January 2009 and expanded to dozens of U.S. markets. Clearwire’s network was designed to provide both fixed home broadband and portable or mobile Internet access. Its newer network used the IEEE 802.16e mobile WiMAX standard, while older markets used Motorola’s Expedience system, which the company described as “Pre-4G.” It also offered optional VoIP services and wholesale access. At its peak, the company covered approximately 88 U.S. markets and reported millions of WiMAX subscribers, making it one of the largest U.S. wireless providers before its acquisition. The company faced continuing financial pressure from the cost of network deployment, competition from cellular LTE, and disputes over funding and spectrum strategy. Sprint became Clearwire’s controlling shareholder in 2012 and completed the purchase of the remaining shares in July 2013 after a bidding contest with DISH Network. Clearwire was subsequently integrated into Sprint. CLEAR retail service ended on November 6, 2015, and the WiMAX network was later shut down. Clearwire therefore survives primarily as a historical example of the WiMAX phase of wireless broadband and as an important predecessor to Sprint’s later spectrum strategy.

Clearwire originated in 1998 when Sierra Technologies separated certain assets into a new wireless broadband company. The early business was associated with spectrum in the former Instructional Television Fixed Service band, later known as Educational Broadband Service. Clearwire Technologies raised capital from Goldman Sachs, but the financing arrangement resulted in a change of control and replacement of the original management team. Craig McCaw’s investment vehicle, Flux LLC, acquired Clearwire’s parent company in 2004. McCaw then purchased Clearwire itself and used resources and technology connected with NextNet Wireless to develop a new wireless broadband platform. Intel and Clearwire began working together in 2004, and Intel and Motorola later provided a major capital infusion. The arrangement helped accelerate WiMAX development while transferring NextNet Wireless to Motorola. Clearwire expanded quickly during the mid-2000s. Its customer base grew from roughly one thousand customers in 2004 to more than 443,000 by May 2008. The company filed for an IPO in 2006 and began Nasdaq trading in March 2007, raising approximately $600 million. Its strategic importance increased as carriers, cable operators and technology companies searched for a way to deliver broadband without wired access networks. In 2007, Clearwire and Sprint Nextel announced a partnership to accelerate WiMAX deployment, but the initial arrangement was terminated later that year. Negotiations resumed under Sprint chief executive Dan Hesse, leading to a broader combination. In 2008, Clearwire agreed to merge with Sprint’s Xohm wireless broadband operation. Sprint became the largest shareholder, while Comcast, Time Warner Cable, Intel, Google and Bright House Networks contributed capital and received an interest in the combined business. The combined network launched commercially in Portland in January 2009 under the CLEAR 4G brand. Clearwire subsequently expanded WiMAX service to many U.S. metropolitan areas and reported coverage of approximately 130 million potential users. Sprint marketed the network as Sprint 4G WiMax, while cable partners resold it with their own broadband and communications packages. Clearwire also operated international services, including WiMAX in Belgium and Spain and earlier Expedience-based businesses in Ireland and Denmark. Clearwire’s business model included fixed home broadband, portable PC-card access, mobile broadband and optional VoIP. Its older Motorola Expedience network remained in selected markets, while the newer 802.16e WiMAX network was intended to support mobility and higher-capacity broadband. The company nevertheless faced high capital requirements, uncertain WiMAX economics, competition from cellular LTE and recurring dependence on Sprint financing. Leadership changed repeatedly during the company’s final years. Bill Morrow became chief executive in 2009, John W. Stanton served in interim and executive leadership roles, and Erik Prusch became president and chief executive in 2011. Clearwire warned in 2011 that it might not meet a debt covenant payment while preserving cash, but it ultimately made the payment and secured a new funding arrangement with Sprint. Sprint became Clearwire’s controlling shareholder in 2012. Sprint then proposed acquiring the remaining shares, while DISH Network mounted a competing bid. The contest ended with a higher Sprint offer, approved by Clearwire shareholders in July 2013. Clearwire became wholly owned by Sprint, shortly before SoftBank completed its investment in Sprint. The CLEAR retail business closed in November 2015, and the WiMAX network was later shut down. Clearwire is now defunct, but its spectrum and network history remain relevant to the evolution of U.S. mobile broadband.

• 2015

  CLEAR service shuts down

  [1]Clearwireen.wikipedia.org

  Retail CLEAR service ended on November 6, marking the end of Clearwire’s consumer operating business.

• 2013

  Sprint completes full acquisition

  [1]Clearwireen.wikipedia.org

  After a bidding contest with DISH Network, Sprint acquired Clearwire’s remaining shares.

• 2011

  Sprint funding agreement

  [1]Clearwireen.wikipedia.org

  Clearwire made a debt-covenant payment and announced a new four-year Sprint arrangement valued at approximately $1.6 billion for network and investment needs.

• 2009

  First commercial CLEAR 4G WiMAX market

  [1]Clearwireen.wikipedia.org

  Clearwire launched commercial 4G WiMAX service in Portland, Oregon.

• 2008

  Clearwire and Sprint combine wireless broadband operations

  [1]Clearwireen.wikipedia.org

  The companies combined Clearwire’s network with Sprint’s Xohm WiMAX business, supported by investment from several strategic partners.

• 2007

  Initial public offering

  [1]Clearwireen.wikipedia.org

  Clearwire began trading on Nasdaq under CLWR after raising approximately $600 million.

• 2004

  Craig McCaw acquires control

  [1]Clearwireen.wikipedia.org

  McCaw’s Flux LLC acquired Clearwire’s parent, followed by his purchase of Clearwire and the introduction of related NextNet technology.

• 1998

  Clearwire is formed from Sierra Technologies assets

  [1]Clearwireen.wikipedia.org

  Sierra Technologies spun off certain assets into a new wireless broadband business that became the foundation of Clearwire.

An early nationwide wireless broadband challenger positioned around portable, fixed and mobile Internet access using WiMAX spectrum and network technology.

• Mobile and fixed wireless broadband · 2009

  CLEAR 4G

  Clearwire’s principal U.S. retail brand for its 4G WiMAX service. CLEAR provided portable and fixed Internet access for consumers and businesses, using the company’s 802.16e WiMAX network. Customers could use dedicated indoor devices, portable modems and other compatible equipment. The service was also resold by Sprint and cable partners under their own brands.

• Fixed wireless broadband

  Expedience

  An earlier fixed wireless service based on Motorola’s Expedience platform. Clearwire used it in selected U.S. and international markets, providing non-line-of-sight broadband through residential subscriber units and PC Card or ExpressCard equipment. The service was positioned as a predecessor to the company’s mobile WiMAX offering and was later replaced or sold in several markets.

• 4G WiMAX broadband · 2011

  Instanet

  The brand used for Clearwire’s WiMAX service in Spain after the company moved away from its earlier Expedience-based platform. Instanet delivered wireless broadband over spectrum in the 3.4–3.6 GHz range before the Spanish operation ceased service in 2013.

• Wholesale telecommunications

  Wholesale WiMAX access

  Clearwire supplied network capacity to Sprint and cable operators including Comcast and Time Warner Cable. These partners marketed wireless broadband under their own names, allowing Clearwire to monetize its network beyond direct retail subscriptions.

• Voice over IP

  VoIP service

  Clearwire offered an optional Voice over Internet Protocol service in some markets for an additional monthly charge, complementing its broadband access products.

• 2010

  Criticism of dynamic data throttling

  Clearwire introduced a network-management policy that reduced throughput for users classified as disproportionate data consumers. Some customers argued that the policy had been applied retroactively or was inadequately disclosed. A later settlement provided certain refunds and service credits while allowing throttling under clearer advertising conditions.

  Source

• 2009

  Class-action allegations over advertised broadband speeds

  A class-action complaint alleged that Clearwire’s actual Internet speeds were lower than advertised and that service was sometimes unavailable. The case was dismissed, although the complainant appealed.

  Source

Read more

• 2015

  Retire CLEAR and the WiMAX networkGeneration change

  Background

  Sprint had shifted its wireless strategy toward newer network technologies and no longer maintained Clearwire’s consumer WiMAX business as a standalone service.

  Action taken

  Sprint ended CLEAR retail operations on November 6, 2015, with the WiMAX network continuing temporarily under a court order before final retirement.

  Aftermath

  Clearwire ceased operating as a consumer telecommunications brand.

  Source

• 2013

  Accept Sprint’s increased acquisition offerM&A

  Background

  Sprint sought full ownership of Clearwire, while DISH Network made a competing proposal during a multimonth bidding contest.

  Action taken

  Clearwire shareholders approved Sprint’s increased offer of $5 per share, and Sprint completed the acquisition of the remaining shares.

  Aftermath

  Clearwire became wholly owned by Sprint and was subsequently absorbed into Sprint’s broader network strategy.

  Acquisition offer per share. $2.97 → $5 (2012–2013)

  • DISH Network — DISH Network submitted a competing proposal, contributing to the bidding contest for Clearwire.

  Source

• 2010

  Adopt dynamic network managementStrategy

  Background

  Rapid growth in wireless data usage placed pressure on the capacity of Clearwire’s WiMAX network.

  Action taken

  Clearwire implemented a policy limiting throughput for users deemed to consume disproportionate amounts of data.

  Aftermath

  The policy generated customer criticism and later resulted in a settlement involving partial termination-fee refunds and service credits.

  Source

• 2008

  Combine with Sprint’s Xohm businessM&A

  Background

  Clearwire and Sprint sought to accelerate national WiMAX deployment by combining Clearwire’s existing network with Sprint’s Xohm operation.

  Action taken

  The companies formed a combined wireless broadband venture supported by strategic investment from cable, technology and Internet companies.

  Aftermath

  The venture launched CLEAR 4G and expanded WiMAX service across numerous U.S. markets, but remained financially dependent on Sprint and faced LTE competition.

  Source

1. 1Clearwireen.wikipedia.org