Shares of Clearwire Corp (Kirkland, Wash., U.S.A.) plunged as much as 31% after a Wall Street Journal report quoted its CEO as saying the company was considering skipping a $237 million interest payment due December 1.
Shares of the cash-strapped high-speed wireless firm dropped as low as $1.28 as investors worried that their fears about bankruptcy could be realized. The stock regained some ground to close at $1.47, down 20%, on the Nasdaq.
Clearwire said it "does not comment on speculation" and declined to discuss the story.
On Thursday, the U.S. House of Representative Intelligence Committee announced it was launching an investigation into the threat posed by Chinese-owned telecommunications companies working in the U.S., including Huawei (Shenzhen, P.R.C.) and ZTE (Shenzhen, P.R.C.).
The investigation comes after a ten month preliminary review of Chinese communications companies was conducted by the committee staff. The preliminary review suggested that there was a national security concern of “the highest priority” and that a more extensive investigation should be conducted.
Tension between Vodafone (London, England) and Verizon Communications (New York) over their joint venture in the United States has eased and the success of new partnerships could determine if that relationship goes any further.
Huawei Technologies (Shenzhen, P.R.C.), the world's second largest telecoms equipment maker, plans to buy Symantec Corp's (Sunnyvale, Calif., U.S.A.) 49% stake in Huawei Symantec (Hong Kong, P.R.C.) for $530 million in a joint venture between the companies that provides security solutions for corporations.
The agreement is subject to regulatory approval, but analysts and company executives foresee few hurdles as the joint venture is based in of Hong Kong. The deal is expected to close in the first quarter of 2012, Huawei said in a statement on Tuesday.
Wyless (London, England) and Wireless Maingate (Stockholm, Sweden), two M2M MVNO's, announced a strategic partnership that will provide both companies will access to the others networks.
On Monday, the Shareholders Foundation, Inc. (San Diego, Calif., U.S.A.) announced that a lawsuit was filed in State Court for current investors of Tekelec (Morrisville, N.C., U.S.A.) in an effort to block the proposed going private offer of Tekelec.
China Telecom Corp Ltd (Beijing, P.R.C.), the smallest of the country's three carriers, is considering entering the U.S. wireless market by offering services to handset consumers who frequent both countries, a company executive said on Wednesday.
China Telecom plans to work out a scheme using MVNO (mobile virtual network operator), aiming to use the network infrastructure of a U.S. operator to provide such services, the executive said.
He said he did not expect significant regulatory hurdles for the MVNO plan, although some analysts are skeptical.
On Friday, DragonWave, Inc. (Ottawa, Canada) announced plans to acquire Nokia Siemens Networks' (Espoo, Finland) microwave transport business, including its associated operational support systems (OSS) and related support functions. Under the deal, Nokia Siemens Networks (NSN) will retain responsibility for its existing sales and associated services for microwave transport, while DragonWave will be responsible for the product line, including R&D, product management and operations functions.
France Telecom-Orange (Paris, France) and Publicis Groupe (Paris, France), an advertising and communications company, announced on Monday plans to launch a new venture capital fund. The fund will finance and develop digital start-up, particularly in France and the European Union, says Orange.
Sierra Wireless (British Columbia, Canada) and Sprint (Overland Park, Kan., U.S.A.) last week announced they are collaborating to help application developers, product manufacturers, and machine-to-machine (M2M) service providers deploy new services. The two companies will co-market Sierra Wireless’ M2M Cloud Platform and Sierra Wireless will support Sprint modules pre-certified on its network.