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Clearwire: Best Buy Ready 4G Service

3/01/2011 09:53:30 AM Eastern
Kirkland, Wash. - Clearwire said it expects Best Buy to launch its previously announced private-label 4G wireless-broadband service early this year.

Last July, Clearwire announcedthat it would sell its 4G Mobile WiMAX service on a wholesale basis to Best Buy and that the national chain planned sometime in 2011 to resell the service under the Best Buy Connectbrand. Last year, Best Buy also began reselling Sprint's 3G wireless broadband service under the Best Buy Connect brand.

Under the Best Buy Connect program, the chain acts as an MVNO, billing consumers, providing customer support, and selling mobile computing devices embedded with wireless modems at subsidized prices with wireless activation.

At the time of last year's announcement, the Best Buy deal marked the first time that Clearwire agreed to sell its service on a wholesale basis to a company outside of its short list of strategic investors, which include Sprint Nextel and cable operators Comcast and Time Warner Cable. Since then, Clearwire also struck a wholesale deal with Beyond Wireless, which it also expects to begin reselling service early this year.

Clearwire mentioned the expected timing of the Best Buy launch in a prospectus filed with the Securities and Exchange Commission (SEC) to exchange $729.25 million in debt for stock. The debt-for-equity swap is part of Clearwire's plan to reduce expenses and raise cash to resume the expansion of its 4G network to new markets.

In the fourth quarter, the company posted a net loss that rose to $128 million from the year-ago $98.7 million. Late last year, the company launched an aggressive round of cost reductions to conserve cash in case it's unable to raise enough money to continue expanding its 4G network.

 

Kirkland, Wash. - Clearwire said it expects Best Buy to launch its previously announced private-label 4G wireless-broadband service early this year.

Last July, Clearwire announcedthat it would sell its 4G Mobile WiMAX service on a wholesale basis to Best Buy and that the national chain planned sometime in 2011 to resell the service under the Best Buy Connectbrand. Last year, Best Buy also began reselling Sprint's 3G wireless broadband service under the Best Buy Connect brand.

Under the Best Buy Connect program, the chain acts as an MVNO, billing consumers, providing customer support, and selling mobile computing devices embedded with wireless modems at subsidized prices with wireless activation.

At the time of last year's announcement, the Best Buy deal marked the first time that Clearwire agreed to sell its service on a wholesale basis to a company outside of its short list of strategic investors, which include Sprint Nextel and cable operators Comcast and Time Warner Cable. Since then, Clearwire also struck a wholesale deal with Beyond Wireless, which it also expects to begin reselling service early this year.

Clearwire mentioned the expected timing of the Best Buy launch in a prospectus filed with the Securities and Exchange Commission (SEC) to exchange $729.25 million in debt for stock. The debt-for-equity swap is part of Clearwire's plan to reduce expenses and raise cash to resume the expansion of its 4G network to new markets.

In the fourth quarter, the company posted a net loss that rose to $128 million from the year-ago $98.7 million. Late last year, the company launched an aggressive round of cost reductions to conserve cash in case it's unable to raise enough money to continue expanding its 4G network.

 
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