| With the backing of several top cable operators and technology partners, Clearwire is aiming to build out a nationwide, data-focused fixed-mobile wireless broadband network using WiMAX technology. But the company faces a variety of challenges, including a lack of device subsidies and the coming competition from the alternative 4G standard, LTE. This report examines Clearwire’s services and device strategy, its partnerships, and its financial status. We also provide a forecast on Clearwire’s subscriber base and revenues, and an outlook on the impact that LTE’s emergence will have on Clearwire’s competitive strength and on WiMAX as a whole. Five tables and charts are included.
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- TABLE OF CONTENTS
- Introduction
- WiMAX Technology Overview
- CLEAR Service Overview
- Clearwire Devices
- Partnerships/Alliances
- Sprint Partnership
- Cable Partnership
- Clearwire Financial Analysis
- Competitive Analysis: State of LTE
- Clearwire Outlook
- Appendix: Clearwire Markets November 2009
- TABLE OF FIGURES
- Fig. 1: Clearwire Packages and Pricing
- Fig. 2: Clearwire WiMAX Devices
- Fig. 3: Comcast High-Speed 2go Pricing (monthly)
- Fig. 4: Clearwire Subscribers, Revenue, and ARPU 3Q08 – 4Q09 (est.)
- Fig. 5: Clearwire Markets in Operation and Planned as of November 2009
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FOR IMMEDIATE RELEASE
WiMAX Service Lacking in Affordable Devices, Report Concludes
SILVER SPRING, MD.—The company pioneering the next generation in wireless broadband communications could face trouble growing its user base because it lacks compelling handheld devices at competitive prices, market research provider Pike & Fischer projects.
Unlike Verizon Wireless, AT&T, and other wireless carriers, Clearwire Corp. has decided not to subsidize the cost of the devices that can access its network, which operates on the technology known as WiMAX. This means users will not get major discounts on their devices when they sign up for a two-year service contract. WiMAX-capable equipment can cost anywhere from $450 to $1,000, and lacks some of the capabilities of today’s smartphones, P&F points out in a new report.
“Clearly, it will be very difficult to drive mass adoption at that price level,” says Tim McElgunn, chief analyst for Pike & Fischer’s Broadband Advisory Services. “Consumers are accustomed to getting their mobile devices subsidized by the carriers, and may balk at the need to pay full price for a device with relatively limited functionality.
“Clearwire and its partners face the dual challenge of designing and manufacturing an attractive and usable handheld and quickly driving down the cost,” McElgunn adds.
Despite these challenges, P&F projects that Clearwire’s ability to obtain additional investment and the worldwide growth of WiMAX both bode well for the company. The company stands to grow its WiMAX customer base in the U.S. to approximately 600,000 by the end of 2010 and to generate revenues of up to $580 million, according to the report.
Pike & Fischer, a BNA business, offers a host of legal and business products covering the telecommunications industry. This new report, Clearwire and the Outlook for 4G Competition, is priced at $649 and can be purchased at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Tim McElgunn at 856-751-6723 / tmcelgunn@pf.com.
For information about Pike & Fischer’s Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 973-718-4703 / jping@pf.com.
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Tim McElgunn
Tim McElgunn, our Chief Analyst, has more than 20 years of experience and expertise in market sizing, forecasting, segmentation and share analysis in emerging and legacy segments of the telecommunications industry. He focuses on the business strategies and competitive status of U.S. cable companies, telephone companies, satellite TV providers and broadband-enabled application providers such as Google, Yahoo and Microsoft. Before joining BAS in November 2006, Tim headed up U.S. consumer broadband analysis for eight years at Stratecast, a division of Frost & Sullivan. He also held senior analyst positions at both Datapro/NBI and Gartner Dataquest. Contact Tim at 856-751-6723 / tmcelgunn@pf.com.
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