Clearwire nets $900 M in financing
Copyright 2006 World Markets Research Limited;
All Rights Reserved
July 6, 2006
By Julian Watson
From Lexis Nexis
Clearwire has announced that it has secured US$900 million in private financing, including US$600 million from Intel Capital and the sale of its broadband wireless access infrastructure business, NextNet, to Motorola.
Under the deals, Motorola will continue to supply Clearwire with equipment on the pre-mobile WiMAX 802.16e-2005 standard. All the parties, including Clearwire, Intel and Motorola, said that they will continue to cooperate closely in the development of fixed, portable and mobile WiMAX infrastructure and services via NextNet, which provides products to operators in five continents.
Significance: Clearwire did not specify how it would spend the money raised through the financing round, but it is likely to put this towards R&D and network deployment. Earlier this year the provider filed for an initial public offering (IPO) and revealed that it had 88,000 subscribers in the United States, and another 11,500 in Belgium and Ireland.