The Motley Fool Previous Page


How Clearwire Is Outsmarting AT&T and Verizon

http://www.fool.com/investing/general/2012/04/12/how-clearwire-is-outsmarting-att-and-verizon.aspx

Keki Fatakia
April 12, 2012

Clearwire (Nasdaq: CLWR  ) is surely putting up a good fight for survival. This otherwise loss-making company has now taken on biggies such as AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) in the wireless Internet space. This has largely been made possible by its clients that are offering cheaper data plans that are targeting the young and not-so-financially-well-off.

So does that mean good times ahead for Clearwire? Let's find out...

For instance, one of its customers -- NetZero -- introduced free wireless Internet services amounting to 200 megabytes per month for up to a full year, subject to certain conditions. Another Clearwire wholesale customer, FreedomPop, is also hoping to give the guys at Ma Bell and Verizon sleepless nights. The company is selling a unique case meant for Apple's iPhone that gives users access to 1 gigabyte of data. The case has an integrated WiMAX data receiver, and can be used as a Wi-Fi hotspot, which enables the phone to have Internet access.

So how is all this helping Clearwire?
Clearwire depends on revenue from clients such as FreedomPop and NetZero, so naturally if they are successful in attracting customers, it would translate into further use of Clearwire's WiMAX network -- generating more revenue for the