Media Contact: Teresa Fausti-Blatt, 425-503-5674
Clearwire Overview:
Clearwire uses protected MMDS spectrum to
provide broadband wireless Internet access to consumers and
small businesses. The company utilizes next-generation, non-line-of-sight
wireless technology provided by one of its subsidiary companies, NextNet,
which claims to provide non-line-of-sight equipment that will
work anywhere. Many in the industry question this claim.
In the late 1990's, Sprint, MCI and a host of other wireless
cable TV providers launched MMDS systems, but they ultimately failed
because their marketing campaigns promised more than their engineering
teams could deliver.
Not because it couldn't be done, but because the companies had a difficult
time explaining that certain customers would never be able to service
because structures or trees blocked their line of site.
How is Craig McCaw and Clearwire using a
combination of MMDS and public spectrum to deliver service? The company
claims to be signing up lots of new customers, but refuses to provide
any official customer counts. If so, why keep it a secret?
Our guess it that Clearwire doesn't want the public to know where it
is having the most success. So where is Clearwire signing up customers?
Perhaps the answer can be found by taking a look back in history.
Craig McCaw grew up watching his father buying and selling radio and
television stations. One acquisition his father made included a small
rural cable operator, which ended up under the younger McCaw's management.
Mirroring a strategy learned from his father, McCaw reduced costs,
increased revenue and began acquiring more small rural cable operators.
Using the equity in the cable systems, McCaw also borrowed money and
began acquiring rural cell phone licenses with the intent of building
the first national wireless cellular network. At the time, people questioned
why someone would want to use a cell phone in more than one city.
Most of the big players had never heard of Craig McCaw. Those who did
doubted his strategy of acquiring assets in rural markets, much the same way
that cable operators and DSL providers to this day frown on broadband opportunties
in rural markets.
I’m sure Mr. McCaw's father was smiling in 1986 when his son sold his
cable operation for $755 million. Then again eight years later, when he
sold his national network of wireless cellular carriers for $11.4 billion.
It is no wonder that when researching material for this article
that McCaw wouldn’t allow his PR team to share the details of what
they are building, nor the number of subscribers they have put on their
systems. But a good guess would be rural areas and secondary markets
where acquiring MMDS licenses is fairly inexpensive.
It's not clear exactly how much MMDS spectrum Clearwire has access to,
although a simple search on the FCC's online database shows the startup holds
132 MMDS licenses. It is estimated that McCaw owns enough MMDS spectrum
to roll out wireless broadband service in the top 75 U.S. markets. The
real question is does McCaw have enough spectrum to rollout a national
network. Highly questionable when Nextel Sprint owns 93% of the
spectrum McCaw needs to build a full fledged national MMDS wireless network.
Another option that McCaw might be pursuing it to buy the Advanced
Wireless Spectrum that the FCC has been planning to auction off for years.
The FCC recently said it might be ready to auction off this spectrum
as soon as June 2006.
It's hard to write a concluding paragraph for this profile without
input from Mr. McCaw. However, given his historical pattern of buying
up rural assets, reducing costs, increasing gross revenues and selling
out for large sums of money, it is a fairly educated guess that
McCaw is pursuing the golden opportunity of providing high-speed
wireless Internet access in rural areas. The real question is,
"What does Craig McCaw know that everyone else seems to be overlooking?"
Time will tell.
Number of Wireless Internet Customers:
Clearwire is a private company and does not publicly discuss their subscriber
numbers. According to a company official, "Customer response to our service
is outstanding -- the customer adoption rate is exceeding our expectations. The
number of subscribers is currently predicted to be ~20,000 subscribers.
Number of Cities/States Served:
Clearwire currently offers service in 25 U.S. markets in
ten states and three international markets, including Belgium, Ireland and Denmark.
Coverage Area:
Clearwire Wireless Coverage Map
Clearwire Sales:
To purchase, customer can call 1-888-CLEARWIRE or go to
the company's website at www.clearwire.com.
Customers can also sign up for Clearwire service at Best Buy stores
located in their respective markets. The company also allows customers to
sign up at Clearwire retail locations and kiosks.