Clearwire's Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of mobile network operator Clearwire (Nasdaq: CLWR  ) got a crystal-clear signal today, jumping as much as 11.7% on fairly large trading volume.

So what: After AT&T (NYSE: T  ) dropped its blockbuster bid for rival T-Mobile USA, analysts started looking at what else Ma Bell could do about its rising radio spectrum needs. Two popular theories involve buying DISH Network (Nasdaq: DISH  ) -- or, indeed, Clearwire.

Now what: Moreover, head-to-head competitor LightSquared is butting up against a Dec. 31 deadline for FCC approval of a network deal that would make Clearwire less important to Sprint Nextel (NYSE: S  ) -- and LightSquared is starting to sound desperate about it.

If you're bored by the wireless industry these days, you're just not paying attention. That said, I don't expect this particular jump to have legs. Buying Clearwire would put AT&T up against another set of formidable regulatory hurdles, and Sprint is probably happy to stretch that LightSquared deadline as needed. Annnnd... we're back to square one.

Interested in more info about Clearwire? Click here to add it to My Watchlist.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.


Read/Post Comments (5) | Recommend This Article (2)

Comments from our Foolish Readers

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  • Report this Comment On December 21, 2011, at 4:15 PM, MattC69 wrote:

    Please explain what "set of formidable regulatory hurdles" would stand in the way of T buying CLWR??? S stands in the way, thats it, and the "regulators" haven't seemed to mind that pernicious relationship playng out like a soap opera for the past 18 months. Maybe a company with some money and good management would actually fulfil CLWR's potential... A little more objectivity in your postings would be great! Just sayin'

  • Report this Comment On December 21, 2011, at 9:29 PM, lgrunner34 wrote:

    I second MATTC69

  • Report this Comment On December 21, 2011, at 10:16 PM, TMFZahrim wrote:

    If T-mob was too big a step towards an AT&T/Verizon duopoly, Clearwire (or Sprint, or LightSquared) would be even bigger. The big two can only get away with buying tiny regional etworks, no nationwide opeartors.

    Anders

  • Report this Comment On December 22, 2011, at 12:54 AM, prginww wrote:

    Since LTE has a formidable obstacle with intrusion into the GPS radio spectrums with bleed

    How about the scenarios that LTE and CLWR get together on a spectrum sharing pair and bleed ATT Verizon and Sprint as the holders of not only the LTE tech but the spectrum needed to run it

    Benefits: keeps a duopoly from happening in cell service

    Prevents intrusion into critical navigation spectrum that GPS uses

    Gets one standard LTE protocol that these new guys OWN

    Seems too simple to me I know that the various competitors hate to co opererate but really this seems simple to me

  • Report this Comment On December 22, 2011, at 11:21 AM, prginww wrote:

    to irmacds,,,,LTE is not a company, it is long term evolution. Read some more on the internet and you will understand that a standard like lte cant be put together with a company like clwr. And of course it seems simple when you dont understand what is going on. Sprint will use an entirely different standard that china mobile has developed because of the Sprint network and how it is configured. And without a doubt this is not simple. Many competing factors that will play out in time.

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