Clearwire, China Mobile sign 4G agreement

Reuters

China Mobile Communications Corp (Beijing, China) and Clearwire Corp (Kirkland, Wash., U.S.A.) have teamed up to develop high-speed mobile devices and infrastructure, potentially giving the cash-strapped U.S. 4G operator a technological boost.

Shares of Clearwire closed up 7% at $2.73 after the news as investors bet that Clearwire's collaboration with China Mobile, the world's largest wireless operator, decreased the risks around Clearwire's future technology choice.

Under their agreement China Mobile will work on chipsets and devices for TD-LTE, a 4G wireless technology, that both companies are planning on using.

Clearwire announced in August it was looking for almost $1 billion in funding to help upgrade its network with Long Term Evolution (LTE). TD-LTE is a variant on that standard.

It's upgrading to this technology partly because its current network is based on WiMax, a technology that has not been embraced by the world's largest service providers. This has made the development of WiMax devices more expensive than cellphones running on more popular technologies.

Chief Financial Officer Hope Cochran said that while the company was looking at a lot of options for how to raise new funding, vendor financing was likely to be the easiest option.

This could involve a credit agreement with a network equipment maker involved in the company's network upgrade. Cochran said during a webcast of an investor conference, that vendor financing would be just a "piece of the puzzle."

The company is also looking at options such as debt, which Cochran conceded is "expensive" right now, and an equity investment with a strategic partner.

Sprint Nextel Corp (Overland Park, Kan., U.S.A.), the majority owner of Clearwire, has held talks with cable partners about supporting their loss-making Clearwire wireless venture in the face of increasing competition from larger rivals, sources have said.

(Reporting by Edwin Chan and Sinead Carew, Editing by Dave Zimmerman, Bernard Orr)

Related Articles

Clearwire sees profit sooner, but needs $900 million more in funding

China Mobile selects Spirent for fiber channgel switch testing

Clearwire selects Ericsson to manage 4G network

China Mobile to set up finance unit with $780 million

ArticleTools

Featured Big Data Reports

Market Opportunity: Big Data in the Internet of Things
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Telecom Carrier Big Data Operations, Applications, and Services
Telcos have a major advantage in that they have many sources of data but if they want to monetize that data and derive meaningful, actionable analytics it could be challenging due to the complexities of correlation, prediction, and the massive volumes of data from different sources.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...