Clearwire's WiMAX Ambitions Hinge on Billions in Capital Investment

Clearwire, a U.S. WiMAX service provider, faces a daunting challenge in its quest to deploy a superfast Internet service for mobile phones, notebooks, and other devices. Despite having received over $3 billion in investments from major companies such as Intel, Comcast, Sprint, and Google, the company now requires billions of dollars to meet the expenses related to the deployment of its WiMAX network. With the credit crunch exacerbating the current economic depression, Clearwire's ability to offer wireless broadband communications services to most of the top U.S. markets by 2010 is uncertain.

Key Takeaways:

Clearwire, a U.S. WiMAX service provider, needs billions of dollars in capital investment for deploying WiMAX networks in the U.S.
The company has already received over $3 billion in investments from major companies such as Intel, Comcast, Sprint, and Google.
Clearwire's stock value has plummeted by 90 percent in 2008 compared to its value in 2007.
The company's investors, including Intel, Google, and Time Warner Cable, have written off their investments due to the significant decline in stock value.
Clearwire's CEO, Ben Wolff, is optimistic about raising funds and is counting on the U.S. government's stimulus package for broadband service to help the company.
The company may also seek additional funds from its investors, including Google and Intel.

Statistics:

$3 billion: The amount invested by companies such as Intel, Comcast, Sprint, and Google in Clearwire.
90 percent: The decline in Clearwire's stock value in 2008 compared to its value in 2007.
2010: The target year for Clearwire to offer wireless broadband communications services to most of the top U.S. markets.

Sources:

"Hall of Shame: Top Ten Worst Investments of 2008" by Oscar Gonzalez, BusinessWeek, February 2009.
"Clearwire Corp. (CLWR) Financials" by Yahoo Finance.
"Clearwire to Raise $500 Million with New Venture Financing Round" by Jason Meyer, Bloomberg, January 2009.