The company will be one of the first to test mobile Wimax in the United States.
Clearwire raised $600 million last week in an initial public stock offering. Now would it get on with changing Internet access as we know it?
McCaw's betting on WiMax
Photo by Neal Hamberg/Bloomberg News/Landov
Clearwire, along with Sprint Nextel, will show whether mobile WiMax is commercially viable for the U.S. Internet access market. As of November, the company had 188,000 subscribers--about a 2% share--of 34 U.S. markets where it offers "pre-WiMax" technology, which provides broadband connections wirelessly to toaster-sized receivers in people's homes. But its big bet is mobile WiMax, which promises faster connections than cellular for PCs, phones, and other devices on the go. Sprint Nextel has committed $3 billion to implement mobile WiMax.
Clearwire--whose founder, Craig McCaw, still owns 49% of voting stock--raised $900 million from Intel and Motorola last summer, has borrowed $755 million since August 2005 and run up a $458 million cumulative loss. Last week, its shares were trading about 10% below the offering price. Tech-driven revolutions aren't getting any cheaper or easier.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.