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Tuesday, July 5, 2011
The actions of the wireless broadband provider Clearwire (CLWR) are up 18 cents, or nearly 5%, to $ 4, after Credit Suisse analyst Jonathan Chaplin raised its recommendation on actions to overcome neutral setting a price target of $ 6, arguing that what is referred to the company's negotiations with Sprint-Nextel (S), "We believe there is an outcome that will create significant value for both parties and we are assuming that rationality prevails ".
Sprint owns 54% of Clearwire, Sprint offers its 4G mobile phone service. There has been much speculation recently about whether Sprint will continue its agreement with Clearwire, or find another option for 4G service. Clearwire will need billions in funds to complete the buildout of its wireless network throughout the country. Chaplin believes that Sprint Clearwire will support.
In short, Chaplin believes that Sprint is not a good alternative to Clearwire. Sprint is not self-sufficient spectrum to build a network called LTE for 4G, AT & T (T) and Verizon Communications (VZ) are doing, and alternatives such as LightSquared, privately owned equipment backed by Harbinger Capital, not viable. (Chaplin does not focus on this report on two immediate alternatives, DISH Network (DISH) and SpectrumCo., Holding the back of the Time-Warner Cable (TWC) and others leased significant slices of the electromagnetic spectrum in the past nationwide auction.
The "key controversy" is whether Sprint will expand the relationship with Clearwire, Chaplin writes.
Sprint represents 30% of current income Clearwire (Sprint will assume 95% of wholesalers). We estimate that this will increase to about 62% in late 2012, when the current Sprint / Clearwire wholesale agreement expires. As such, the continued use of Sprintís Clearwire is considered essential for the viability of Clearwire (Clearwire to find additional wholesale customers large).
Chaplin notes, "Clearwire has a wider spectrum than any other airline in a market of limited scope" and that this should lead to a lower cost per gigabyte.
As for funding, Clearwire needs only $ 2 billion more to achieve balance, compared with $ 5.1 billion LightSquared, he estimates.
The financing needs of the Company Clearwire assumes overlap with its existing markets and build LTE COP an additional 70 mm. We believe that Clearwire is better positioned to obtain additional capital LightSquared. We have the asset coverage provided by the spectrum to determine the funding prospects. Clearwire has a higher asset coverage, assuming LightSquared 40MHz spectrum is usable. Clearwire's assets increases coverage ends LightSquared advantage if only 10-20MHz usable spectrum. (They ignore the demands of both companies make about potential strategic investors - these are impossible for us to evaluate).
Sprint shares are down this morning 2 cents to $ 5.41.
Sprint owns 54% of Clearwire, Sprint offers its 4G mobile phone service. There has been much speculation recently about whether Sprint will continue its agreement with Clearwire, or find another option for 4G service. Clearwire will need billions in funds to complete the buildout of its wireless network throughout the country. Chaplin believes that Sprint Clearwire will support.
In short, Chaplin believes that Sprint is not a good alternative to Clearwire. Sprint is not self-sufficient spectrum to build a network called LTE for 4G, AT & T (T) and Verizon Communications (VZ) are doing, and alternatives such as LightSquared, privately owned equipment backed by Harbinger Capital, not viable. (Chaplin does not focus on this report on two immediate alternatives, DISH Network (DISH) and SpectrumCo., Holding the back of the Time-Warner Cable (TWC) and others leased significant slices of the electromagnetic spectrum in the past nationwide auction.
The "key controversy" is whether Sprint will expand the relationship with Clearwire, Chaplin writes.
Sprint represents 30% of current income Clearwire (Sprint will assume 95% of wholesalers). We estimate that this will increase to about 62% in late 2012, when the current Sprint / Clearwire wholesale agreement expires. As such, the continued use of Sprintís Clearwire is considered essential for the viability of Clearwire (Clearwire to find additional wholesale customers large).
Chaplin notes, "Clearwire has a wider spectrum than any other airline in a market of limited scope" and that this should lead to a lower cost per gigabyte.
As for funding, Clearwire needs only $ 2 billion more to achieve balance, compared with $ 5.1 billion LightSquared, he estimates.
The financing needs of the Company Clearwire assumes overlap with its existing markets and build LTE COP an additional 70 mm. We believe that Clearwire is better positioned to obtain additional capital LightSquared. We have the asset coverage provided by the spectrum to determine the funding prospects. Clearwire has a higher asset coverage, assuming LightSquared 40MHz spectrum is usable. Clearwire's assets increases coverage ends LightSquared advantage if only 10-20MHz usable spectrum. (They ignore the demands of both companies make about potential strategic investors - these are impossible for us to evaluate).
Sprint shares are down this morning 2 cents to $ 5.41.
Labels: Business
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