Clearwire CEO Bill Morrow unexpectedly quits
Clearwire might not have made the best choice in picking WiMAX as its 4G technology of choice as the world moves towards an LTE 4G future, but WiMAX is still at the core of carrier networks like Sprint's. Now, however, rather unexpectedly, Clearwire's chief executive officer Bill Morrow resigned citing personal reasons, leaving the company in the hands of the chairman, John Stanton, who will temporarily take on the position.
The chief commercial and information officers stepped down as well, which raises some questions about Clearwire's future. Could this open more room for change within the company? An LTE future is a possibility for Sprint and we have seen other countries like Russia and one of its largest WiMAX providers Yota deciding to switch to LTE mainly because of “a wider ecosystem” for the latter. For a closer look at the differences between WiMAX and LTE check out our in-depth article here.
The future of Clearwire might be unclear, but the company also has to secure its current wellbeing by finding billions in funding necessary for it to expand its network and swing into profit in 2012. The wireless network provider said that the executive shake-up won't affect a dispute with 54% owner Sprint over funding. It also noted that it could sell spectrum it does not need as an option for raising capital.
source: Clearwire via Financial Times
1. AndroidTroll (Posts: 359; Member since: 05 Mar 2011)
It's all downhill from here for Clearwire. Sprint is just waiting for it to bleed out until it buys it out.
2. snowgator (Posts: 3015; Member since: 19 Jan 2011)
That may make some sense. Dan Hess has said that any future of Sprints includes Clearwire and wimax, even if they don't rule out a LTE move. (That was in an online Bloomberg story I believed posted on the 9th under their Tech section.) The only way that makes sense is if it is a profit creating partnership for Sprint. If Sprint controlled Clearwire, or outright owned it, that would apply.
3. gustavo91 (unregistered)
Clear 4g sucks, I live in NY and never gat any 4g in any buildings I have been in to, they have no buildin. Penetration. Google clear 4g sucks
6. zuno gyakusatsu (Posts: 257; Member since: 16 Mar 2010)
your understanding of the english language sucks.
4. Gawain (Posts: 292; Member since: 15 Apr 2010)
Let's see, a company bleeding cash with negative margins measured in triple digits in a dispute with a majority owner who merged their own 4G licenses, who is also bleeding cash and contending with negative margins.
Sprint needs to be in a position to lay claim to the original Clearwire licenses if Clearwire files for bankruptcy, which is what I bet will happen this year.
5. snowgator (Posts: 3015; Member since: 19 Jan 2011)
As a side note- Phone Dog just posted that 15 customers of Clearwire, didn't name names, just filed suite against them for throttling speeds below the level that the company agreed to when contracts were entered into. The term "Ponzi Scheme" was included in the lawsuit. Wonder what Clearwire stocks are selling at?