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Clearwire Releases its 4th Quarter 2007 Results and the 700 MHz Auction Continues to Wind Down.
Clearwire Reports its 4th Quarter Results and the FCC implements new rules to help close out its 700 MHz Auction.
Clearwire's addition of 47,000 subscribers in the fourth quarter of 2007, while more than twice the customers than any other fixed/portable company even has, appears to have not impressed Wall Street very much. This customer growth brings Clearwire to 394,000 subscribers total up from 206,000 at the end of the prior year's quarter. Sales rose to $45.4 million for the quarter and totaled $151.4 million for the year, but expenses rose also. And capital expenditures for the quarter were over $80 million. Total losses for the year exceeded $727 million. This is a highly intensive cash flow business and Clearwire has clearly been in a high growth mode in terms of network build out and expansion. Will slowing growth, give the company a chance to improve its subscriber base without a lot of additional overhead and capital expenditure for a while? What do you think?
On the 700 MHz front, the FCC resorted to its "stage 3" bid rules to help along the process of closing this endless auction out. Bidding appears now to be centered in small regional segments. Bidding rounds have climbed to 10 per day. Maybe this will be over soon so we can get busy fussing about what equipment to use.
Tim Sanders,
TheFinalMile
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