Clear and present danger: WiMAX firm posts heavy loss despite improved revenues

13 Feb 2013

US WiMAX giant Clearwire has reported revenues of USD1.26 billion for the twelve months ended 31 December 2012, up 1% year-on-year. Adjusted EBITDA remains negative however, with the telco reporting a loss of USD156.9 million for the period under review, compared to a deficit of USD313.9 million in 2011. Further, Clearwire posted a full year operating loss of USD1.38 billion for 2012 compared to a loss of USD2.39 billion one year earlier

In operational terms, Clearwire ended 2012 with a consolidated subscriber base of 9.581 million, broken down as 8.220 million wholesale customers and 1.361 million retail users. Although Clearwire added 71,000 net retail connections in 2012 it shed 901,000 net wholesale users throughout the year, principally as a result of the discontinuation of post-paid WiMAX offerings by co-owner Sprint Nextel. TeleGeography notes that Clearwire’s wholesale figures have been in decline since 1Q12, when Sprint – which accounts for ‘substantially all’ of Clearwire’s wholesale customer base – announced that it was phasing out its mobile WiMAX service, in favour of its own competing 4G Long Term Evolution (LTE) technology.

Erik Prusch, president and CEO of Clearwire, commented: ‘Our full year 2012 results demonstrate our continued focus on reducing costs, managing revenues and liquidity, and providing exceptional service to our customers during a transition period as we build an LTE network equipped to provide wireless consumers the speeds and capacity they desire’.

United States, Clearwire,

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