Skip to main content

Clearwire: record subscriber additions, $227 million loss

Clearwire logo
Image used with permission by copyright holder

WiMax operator ClearWire has revealed its financial results for the first quarter of 2011, and while the company is still struggling, there are some bright spots on its horizon. Clearwire says it added 1.8 million subscribers during the quarter, with 1.6 million of those coming through wholesale partners like Sprint. Those numbers added up to revenue of over $258 million for the quarter, although Clearwire still managed to chalk up a $227 million loss for the quarter. However, the company’s recent $1 billion wholesale agreement with Sprint puts the company on sounder financial ground—and their 4G network now reaches some 126 million people compared to just 41 million a year ago.

“During the quarter we made good progress toward our objective of achieving positive EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] in 2012 by executing new agreements with Sprint, delivering strong post-pay subscriber growth and company-best wholesale revenue growth, as well as significantly lowering our operating costs,” said Clearwire chairman and interim CEO John Stanton, in a statement.

Recommended Videos

The current quarter has seen a good deal of drama for the 4G operator: CEO Bill Morrow stepped down unexpectedly in early March, leaving former VoiceStream and Western Wireless head John Stanton to take the reigns while the company searches for a new leader. The company is also facing a lawsuit from angry customers who claim Clearwire knowingly oversold its services, signing up customers it knew were outside its effective coverage areas and then charging them early termination fees when they were dissatisfied with Clearwire service. However, Stanton’s time at the helm of the company has cleared one major dark cloud from Clearwire’s future: mobile operator Sprint will be paying Clearwire $1 billion in wholesale fees to offer 4G WiMax services to Sprint customers—Sprint is Clearwire’s biggest customer (and investor), and the cash infusion means Clearwire won’t have to resort to more desperate cost-cutting measures in order to keep operating. Six months ago, there was very real concern Clearwire wouldn’t be able to continue operating beyond mid-2011.

Clearwire says it ended the first quarter of 2011 with 6.15 million subscribers, a 533 percent increase from the 971,000 subscribers it had a year ago. The bulk of those (some 4.86 million) come by way of wholesale partners (namely Sprint) rather than Clearwire’s own retail offerings, and the bulk of the wholesale subscribers use mixed-mode devices that drop back to 3G services when Clearwire 4G isn’t available.

Clearwire now forecasts it will conclude 2011 with about 9.5 million subscribers, with the bulk of those coming through wholesale partners; the company previously forecast ending the year with 8.6 million subscribers. However, while the company expects to spend less than $400 million in capital expenditures this year and will continue to work on improving efficiency and cash flow, Clearwire doesn’t expect to achieve a positive balance sheet until 2012.

Geoff Duncan
Former Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
Our favorite Android phone — the OnePlus 13 — is 12% off for Prime Day
The OnePlus 13's screen.

Are you planning to buy a new phone from this year's Prime Day? The good news is that there's no shortage of phone deals to choose from, but this is the one that we recommend — the OnePlus 13 with 512GB of storage for only $880. Just launched in January, that's the device's lowest-ever price, following a 12% discount on its original price of $1,000. You're going to want to proceed with the transaction as soon as you can though, as there's a chance that the savings of $120 on this Android smartphone will disappear before the shopping event ends.

$880 at Amazon

Read more
The OnePlus 13R is at an all time low Amazon Prime Day price
Camera module on the OnePlus 13R white held in hand.

In case you haven't figured out, we're in the middle of summer Prime Day 2025, and that means good deals all around. One such deal is for the OnePlus 13R, now reaching an all time low price. Usually $600, the phone is now down to $500, a savings of $100. Tap the button below to get directly into the deal or keep reading to see what we thought about the phone, a quick refresher on how it compares to the OnePlus 13, and the quirky budget phone it beats hands down.

$500 at Amazon

Read more
Our top fitness tracker is back to its lowest-ever price for rare Prime Day deal
Someone wearing a Fitbit Charge 6.

We're here with Prime Day 2025 and it feels like a new era. The event is longer, which can make it feel a bit like Black Friday. Another thing making it look like Black Friday? Our top pick among the best fitness trackers — the Fitbit Charge 6 — is back to its rarely-seen Black Friday pricing. Usually $160, you can now get a Fitbit Charge 6 for just $100 if you're an Amazon Prime member. (If you're not, and still want to save the $60, you can easily sign up with an Amazon Prime free trial.) Just tap the button below to see the offer for yourself, making sure to make your purchase before Prime Day ends this Friday.

$100 at Amazon

Read more