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Since 1990, I have built wireless systems in USA and China. I have experienced wireless system from 1G to 4G. As a wireless technology expert, I provide consulting services and teach wireless workshops and seminars around the world.
  • Does DISH Know What It Is Doing By Bidding CLWR? 0 comments
    Jan 11, 2013 3:42 PM | about stocks: S, DISH, S

    Remember Light Squared?

    It is dangerous and wasteful of money for people do not understand wireless technology to play wireless.

    DISH may be one of those examples.

    If DISH simply wants to own CLWR spectrum and resell it later, that is fine to do.

    If it seriously thinking of building a nationwide network using CLWR, it is making a fool of itself.

    My statement is simple: No one in USA today can build a nationwide wireless cellular system cost effectively without controlling at lease one of the following companies: T Mobile, Sprint, ATT or Verizon Wireless.

    With decades of built out, all these companies have about 30,000 to 50,000 wireless towers nationwide, not counting in-building DAS system in airport, stadium, conventional centers, casinos and hotels. It takes decades and ton of money to replicate that nationwide network.

    CLWR can never build any system to compete with above mentioned companies on its own. It was failing because its system was never effectively incorporated with Sprint system. It was losing tons of money and bleeding to death. The best way to use its spectrum is to build it on top of existing system as an add-on, sharing towers, power supply, backhaul, antennas and base station space, not green field build out.

    Softbank understand that. It will not making a bid for Sprint without CLWR spectrum or bid on CLWR without owning Sprint. In theory, it could buy T Mobile and then buy CLWR. However, Sprint owns about 50% of CLWR. It is much easier and efficient to buy Sprint to control CLWR.

    A better move for DISH is to buy more CLWR and join other shareholder to demand higher price from Sprint. As a compromise, it can later make a deal with Sprint to bundle its DISH service with Sprint wireless package.

    Disclosure: I am long CLWR, S.

    Additional disclosure: I have no long positions (I have to make a choice before posting). I short CLWR and S puts, kind of long.

    Stocks: S, DISH, S
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