Geddy

17 True 'Bottom Rung' Companies

But the problem is higher than normal churn and a very disgruntled customer base. Yes, every carrier has disgruntled customers but I've never seen entire websites dedicated to them as you can find in numerous places regarding Clearwire. Yes, they have 3.2 billion or so now...but they haven't even begun to build out a nationwide network and I can tell you that amount of money is no where near enough. With the economy in turmoil I can't see them raising any capital in the amount needed. Knowing some employees personally within the company, the only way they're becoming cash flow positive is to make employee needs secondary (try comparing their pay scale as well as benefits with ANY other carrier to see major differences).


On Mar 18 09:36 AM Karen Mulvany wrote:

> Did you really intend to label Clearwire as a bankruptcy risk? The
> company has raised $3.2 billion in equity since their last 10-Q filing
> and only has $1.35 billion in long term debt. They have reported
> their December quarter to reflect the newly capitalized company but
> have not yet filed a 10-K. But, if you check their press release
> you will see that total cash & equivalents, net of debt, amounts
> to $1.75 billion.
>
> Clearwire will certainly be unprofitable in 2009. That is by design,
> as they aggressively build out their broadband wireless network,
> which turns cash flow positive on a market-by-market basis over time.
> This is a well understood model executed in the past by cable TV
> and cellular companies decades ago, as well as by Clearwire itself
> in pre-WiMax markets to date.