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  • DISH And Sprint Can't Split The Baby [View article]
    Son wants to reach the 90% share ownership level and complete a short form merger. There is nothing stopping him from buying in the open market now to accomplish that.

    However Ergen will not go gentle into that good night, which will be the case for DISH if they cannot find a way into the wireless arena so they can offer content everywhere as planned by Ergen. At minimum you can expect a much fairer valuation of the Clearwire spectrum than the original .11 per Mhz-POP that Sprint offered. Best guess it will be closer to the .31 per Mhz-POP although a much more insightful analysis has been done by others on this site.(See SR Capital and Cal Smith writes on Seeking Alpha)
    Jun 19 05:22 PM | Likes Like |Link to Comment
  • Shifting Balance Between Telecom Infrastructure Vs. Service Providers Now Favors Infrastructure [View article]
    I do agree that the current spectrum holdings of Clearwire is like having an investment portfolio with 70% in fixed rate, probably not a wise thing with a relatively small investment base. However your comments about the value and efficacy of the 2.5 Ghz is very dated. Regardless of what frequency range you would like to mention, all spectrum will require engineering trade off's when put into service. The more poorly you select a service to put a specific spectrum too use in, the more engineering compromises you will need to make, that includes lower 600 & 700 MHz frequencies in high density areas or an attempt to use 2.5Ghz for range expansion rather than total data carrying capacity enhancement. Additionally, what is often lost in these types of conversations is through current hardware and software technology(along with well planed implementation) the use of 2.5Ghz frequencies can allow better use of lower frequencies making it more efficient and profitable therefore actually magnify and reflecting an improved value into higher frequencies,

    The old standby comments that the higher frequencies just aren't worth as much as the lower frequencies does acknowledge the changes in the industry technology or current thinking, even it supports the desire to lower spectrum purchase costs.
    May 28 07:20 AM | Likes Like |Link to Comment
  • What Clearwire Shareholders Are Mulling Over This Weekend [View article]
    As far as I understand, the spectrum that Ergen is bidding for in Stalking Horse fashion, is immediately available for use as satellite spectrum in low power applications. Since he intends to develop a broad data network using his current and future satellite fleet, it only makes sense to improve his download and upload link capacity.


    I would not anticipate Ergen trying to get terrestrial use approval for this spectrum, as Falcone did in foolish fashion, leading to BK of his company. Pricing for the spectrum also appears to be deeply into distressed sales territory, and wll have very limited number of competitors chasing after it (hence no major telecom competitive bids), because of the type of use the spectrum is approved for and its limitations.
    May 24 10:34 AM | 1 Like Like |Link to Comment
  • Today's Market News To Trade On: 5 Stocks Moving On News [View article]
    It's amazing that people like to quote the improved share price from an artificially low point generated by the acquiring CEO talking about BK in an open forum, all the time knowing he has plans to assure a revenue stream for the company.

    Why not talk about the numerous times the CFO and CEO of Clearwire touted a much higher corporate value based on assets rather than operational excellence. Of course it would be awkward to suggest management was able to identify a fair valuation when offering a $7 secondary, however since receiving incentives for closing the deal (only with Sprint), they have revised their position to suggest $2.97 was fair but now $3.40 is a fair value.

    Let's try this, let's say ever since the $7 secondary, Clearwire management has seen the share price drop by about 80% and now that a modest competing offer from DISH has been made, the share price is less than 50% of what management said it is worth, however finds it reasonable to recommend an even lower offer from Sprint, just because.

    No, $3.40 won't make it until or unless it is shown that management has the capacity to have a fair and unincumbered sale of the assets, which has not yet happened. Until then, any share price less than the former head of the FCC's estimation, will not receive the majority of the the required minority vote and SoftBanks plans for Sprint which hinges on Clearwires spectrum will be at risk.
    May 22 09:49 AM | Likes Like |Link to Comment
  • What Clearwire Shareholders Are Mulling Over This Weekend [View article]
    There are compelling reasons for the FCC to ask Clearwire to make roughly half their current spectrum holdings available to other operators. The single best argument is the likely hood of much of their spectrum remaining fallow and hindering competitive activity in the market by more solvent companies that can utilize the spectrum almost immediately. Concurrent with such a decision, the FCC relieves some of the pressures to rush a spectrum auction, it will offer an opportunity to address Sen. Hatch's concerns and will preserve open market valuation of much needed spectrum, rather than allowing it to be acquired through strong arm tactics at distressed liquidation pricing. Many benefits, very limited downside for such a decision.
    May 20 08:41 AM | 1 Like Like |Link to Comment
  • Clearwire Mails Letter to Stockholders Stating Proposed Transaction With Sprint Provides Best Strategic Alternative for Clearwire's Minority Stockholders [View article]
    Best strategic decision? The minority shareholder has no strategic position or interest if the recommendation is followed, they would simply allow Sprint to get their holdings at $2.97 per share when they could sell them in the open market for an additional 12%+ .

    There is also a better offer still on the table from DISH for $3.30 per share...why on earth would a minority shareholder not expect the Clearwire BoD to accept the higher all cash offer from DISH?

    This recommendation is a direct breach of minority shareholder rights as indicated by Delaware law and a breach of fiduciary responsibility by the Clearwire management, regardless if they accepted a stock bonus payable on the deal being completed only with Sprint.

    A deal fairness review by both the FCC and Delaware courts is called for by this recommendation.
    May 7 10:33 AM | Likes Like |Link to Comment
  • Why Dish's Offer Does Not Measure Up: Growth And Share Factors [View article]
    Very difficult to give much weight to your article when you put DISH's highly profitable business in the dog quadrant and only support that poor positioning by suggesting it is slow growing. If you have any understanding of a cash cow, you would know that is where the business belongs and will remain there for a long time, unless Ergen is able to enter the video content everywhere race with Clearwire spectrum, company or Sprint which will make the content access through his businesses a very fast growth segment.

    Although some Sprint customers will already be using DISH, there will be a significant number that will be ripe for capture with video everywhere at one price, rather than multiple buying of the same content for different devices.
    May 6 07:20 PM | Likes Like |Link to Comment
  • The War Of 4G Long Term Evolution [View article]
    The correct action here belongs to the FCC, it needs to decide before the proxy that SoftBank can move forward with its attempt to purchase Sprint, however all spectrum will be considered in a spectrum cap review, with a preliminary finding that total current spectrum holdings of a combined SB-S and Clearwire would exceed prudent spectrum holdings for any one corporation in light of the potential to actually use it within a reasonable period.

    Such a finding would encourage competitive action in the industry and would allow quick utilization of readily or immediately available contiguous unencumbered spectrum (maybe half of CLWR holdings or 60 to 70 MHz) in the hands of companies with immediate needs. However, that salable block of spectrum will be included in a caps review before future spectrum auctions occur.

    Such a scenario would clearly be following the FCC mandates, make much needed spectrum available in the market and protect needed telecommunication investors by having currently held assets achieve fair market value without single company manipulation or confiscation. This type of ruling would require the CLWR BoD to establish a proper spectrum sale and not improperly reward new entities, be that SB or DISH. One additional benefit from the spectrum sale would be the likely elimination the $3.5B Clearwire debt, freeing either DISH or SoftBank of that burden and helping to ensure the new companies success.

    (some of these comments are from an earlier post)
    Apr 18 11:36 AM | 2 Likes Like |Link to Comment
  • The Race For Clearwire's Assets Is Entering The Homestretch [View article]
    The correct action here belongs to the FCC, it needs to decide before the proxy that SoftBank can move forward with its attempt to purchase Sprint, however all spectrum will be considered in a spectrum cap review, with a preliminary finding that total current spectrum holdings of a combined SB-S and Clearwire would exceed prudent spectrum holdings for any one corporation in light of the potential to actually use it within a reasonable period.

    Such a finding would encourage competitive action in the industry and would allow quick utilization of readily or immediately available contiguous unencumbered spectrum (maybe half of CLWR holdings or 60 to 70 MHz) in the hands of companies with immediate needs. However, that salable block of spectrum will be included in a caps review before future spectrum auctions occur.

    Such a scenario would clearly be following the FCC mandates, make much needed spectrum available in the market and protect needed telecommunication investors by having currently held assets achieve fair market value without single company manipulation or confiscation. This type of ruling would require the CLWR BoD to establish a proper spectrum sale and not improperly reward new entities, be that SB or DISH.

    Concerning Sprint specifically, their actions over the past 2 years with Clearwire begs for a fairness review by the FCC and demands a complete deal fairness review by Delaware courts. Their actions have been a direct assault on the minority holders of CLWR with the sole purpose of a squeeze out merger and take-under. If allowed, every CEO will be incentivized to spin out a business, seek an IPO/secondary and then take back the company at a lower price with its new minority shareholder funds. Now that's not a whine, just the way it is.
    Apr 18 11:04 AM | 2 Likes Like |Link to Comment
  • Clearwire's Options Are Arranged Or Forced Marriage [View article]
    Sprint and DISH have simply started the process where the valuable spectrum assets will be acquired. DISH's offer has given the Clearwire BoD a fiduciary escape from the restrictive bindings Sprint has held Clearwire in for a number of years.

    Today's DOJ request to the FCC will delay any deal long enough for other potential bidders to enter the spectrum lottery. Who or exactly when...well we now have time to find out. However, spectrum on the open market will draw attention if you consider the data demand growth rate AT&T has recently reported and the limited amount of spectrum that is available.
    Jan 29 04:18 PM | Likes Like |Link to Comment
  • Is Dish Putting The Sprint-Softbank Merger In Jeopardy? [View article]
    I see the same uninformed responses concerning Clearwire that seem to be self perpetuating, like my teenager who has the belief that if you say it enough and say it long enough, whatever you say will be true.

    First, if the offer is fair or not fair is simply a matter of opinion which is self evident by the fact you may take either side based on your individual investment position. The definition of fair can only be determined after the fact, as the best deal possible should be reached if fairness and fiduciary responsibilities are applied.

    The same issues with bias are apparent when you see someone write that the spectrum is of poor quality. All spectrum frequencies have advantages and disadvantages and as someone else said who obviously has no “Radio Spectrum experience”, each spectrum frequency must be utilized taking into account both strengths and weaknesses. As an example, 700MHz spectrum has longer range and does propagate through obstruction better than a high frequency like Clearwires 2.5GHz spectrum, but in dense high usage areas like mid-town metro areas or sports complexes, the 700MhZ characteristics are a liability as you can only get so many users and/or bits of data through one cell tower and because of the longer range of 700MHz frequency, you must engineer a system which minimizes interference from one 700MHz tower to another (you can’t put too many towers near each other, even if you need them to eliminate capacity issues). The best systems would offer multiple frequency bands where both capacity and range can be offered. Simply put, Clearwire’s spectrum is valuable just like all other spectrum and that value is maximized when you use the correct frequencies in the correct way.

    Regardless if Sprint owns 51% of Clearwire shares or more, unless they can gain a full 75% of the outstanding shares, they do not control Clearwire. The former Clearwire BoD knew fully well how to protect minority shareholders interests when they implemented the super-majority voting rules into the business charter. Clearwire understands this, Sprint understands this, DISH understands this and so do the courts which will hold any deal to a higher standard of overall fairness, which essentially means a Clearwire BoD must work to maximize the minorities return in the short run, even if it puts the company in jeopardy longer term, post acceptance of an offer ($3.30 trumps $2.97 regardless of debt assumption). Since Sprint has/had chosen not to carry Clearwire on its books specifically to avoid liabilities, the court will simply view them as a majority shareholder, not a controlling corporation as professed.

    There will be additional offers or DISH will win.
    Jan 28 12:30 PM | 2 Likes Like |Link to Comment
  • A Recent History Lesson: How To Play The Dell Acquisition [View article]
    That's an interesting take on Clearwire Brian and I see how it may make your point for Dell, if everyone saw it the same way.

    If however as an investor you both listened to Clearwire management and did some independent research on the spectrum holdings Clearwire has, then the 39.7M shares Clearwire sold back in June of 2010 for $7.33 seemed very reasonable on a Mhz-POP basis.

    Since that secondary offering, new management has done a much better job addressing operating costs, strategic direction plus continued to tell everyone about the intrinsic value of its spectrum assets. It seems the Sprint placed BoD at Clearwire simply tried to give them a sweetheart deal and discovered getting a 75% shareholder approval wouldn't fly at $2.97 per share!

    All of this however does NOT throw dirt on you Dell comments.

    Regards,
    Jan 16 07:03 PM | 1 Like Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    In June of 2010 Clearwire thought a fair price for 39.7M shares was $7.33. Since then Clear has reached a new four year deal with Sprint, added MVNO's, expanded its network, transitioned to an TDD-LTE strategy, stopped retail outlet expansion, reduced quarterly operating expenses, brought discipline to future expenditures AND retained 100% of its spectrum holdings.

    $7.33 would probably get most hold outs,
    Jan 16 06:45 PM | 2 Likes Like |Link to Comment
  • Clearwire: With DISH Entering The Fray, A Higher Offer From Sprint Is On The Way [View article]
    There is no reason to believe Sprint or for that matter DISH will get spectrum at liquidation pricing, as they won't get the smaller retail investors approval (the majority of the 29%).

    Most retail investors have heard all the talk about the spectrum not being valuable for one reason or another, however they also know about 2.6GHz becoming a world-wide standard, know that Softbank is already using it very profitably in Japan and also know that transferable leased spectrum does not run afoul of FCC caps. They understand that SB-S must have most of Clearwires spectrum to achieve Son's objectives in the U.S..

    I would suggest current Clearwire holders are not greedy or slow learners, rather investor with insight and some control at this point. Shorts should prepare for some margin calls.
    Jan 13 08:15 PM | 4 Likes Like |Link to Comment
  • Sprint's Attempt To Buy Clearwire [View article]
    Not debating what has happened in the past, rather commenting on how corporations are allowed to operate and what may now happen because of the excessively low buy-out offer; Why wouldn't the "control" and ownership issues carry this agreement into the higher court system, as it appears these companies have "invented" a new type of business structure / operational agreement where each can point to the other and say "you have fiduciary responsibility for THAT group of shareholders and although we can stop any business sales or development activity we want, we do not have a fiduciary responsibility too THOSE same shareholders". Should Sprint have a defacto fiduciary responsibility in a "novel" business structure such as this one?

    I would think some serious consideration may be given by the courts around the definition of arms-length or independent entity and subsidiary.
    Jan 2 11:52 AM | 1 Like Like |Link to Comment
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