Clearwire says it is evaluating its Long Term Evolution 4G network plans, to align spending with expected revenue, and "may elect to delay a portion of our deployment schedule accordingly."
In one sense, that is not helpful to Clearwire at a time when other mobile service providers are building their LTE networks as fast as they can. On the other hand, helpful or not, Clearwire cannot afford to spend more capital than it has access to, even if it would prefer to build faster.
Clearwire has said it will begin building the LTE network early in 2013 and have 5,000 LTE sites up by middle of 2013.
Clearwire had $1.2 billion in cash at the end of the second quarter and, based on its needs, had enough cash for "at least" the next 12 months. The company, which holds a large chunk of wireless airwave licenses, also has said it could sell assets to raise cash.
As a practical matter, Clearwire might ultimately wind up functioning as a "spot supplier" of additional LTE capacity in markets with heavy usage, rather than as a complete national network using only its own facilities.
That would not be an unusual pattern in the industry, where virtually no networks have network everywhere. Such a plan also would better match the capital Clearwire seems to have available.
Wednesday, October 3, 2012
Clearwire May Delay LTE Network Build
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Will AI Fuel a Huge "Services into Products" Shift?
As content streaming has disrupted music, is disrupting video and television, so might AI potentially disrupt industry leaders ranging from ...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment