The Motley Fool Previous Page

Clearwire Talks to AT&T, Verizon, and Others About Selling Capacity

Phil Goldstein, FierceWireless
September 23, 2011

Clearwire (Nasdaq: CLWR  ) CEO Erik Prusch said the company is talking with multiple wireless carriers about selling capacity on its 4G network, which may be a way for the cash-strapped company to secure more funding as it tries to deploy an LTE-Advanced network.

In a series of interviews with media outlets, Prusch made clear that Clearwire is in negotiations with a range of carriers, including AT&T (NYSE: T  ) , Verizon Wireless (NYSE: VZ  ) , MetroPCS (Nasdaq: PCS  ) , and Cricket provider Leap Wireless (Nasdaq: LEAP  ) . The talks, which have not yet yielded any concrete wholesale relationships with new carriers, are an indication of the funding crunch Clearwire is in as well as the willingness of Sprint Nextel (NYSE: S  ) , Clearwire's majority owner and largest wholesale customer, to allow Clearwire to find new wholesale partners.

"All those discussions are under way," Prusch told Bloomberg. "I'm confident we'll bring in new wholesale partners. Our message to the industry is that we've got the capacity to handle their needs."

Similarly, he told The Wall Street Journal that the talksĀ are "continuing and getting better," adding, "I'm