Puzzled by Clearwire’s Wholesale Strategy? Order our Report!
When observers look at nascent national WiMAX provider Clearwire Corp. (NASDAQ: CLWR) they see a potential competitor to big cellular providers like Verizon and AT&T in the wireless-data marketplace. But then they hear about Clearwire reselling its services through partners like Sprint, Comcast and Time-Warner Cable, and confusion sets in.
You can hear the questions sometimes during conference calls or at trade-show press conferences: Does Clearwire compete with Sprint? How can it hope to sell services against Comcast? To help you gain more understanding, our just-released CLEARWIRE BUSINESS REPORT for July, 2010 explains the details behind Clearwire’s wholesale operations, and why it may not be a bad thing if wholesale subscribers outnumber Clear-branded retail customers for the just-completed second fiscal quarter.
An excerpt from the report (which you can download immediately for just $9.95 USD):
While some observers want to see these multiple brands selling the same service as potential competitors, for Clearwire it doesn’t matter who sells the subscription because every active user on the network means more money for Clearwire’s bottom line. Though Clearwire gains more up-front money by signing up customers to its own-branded service, it must also spend marketing and operational money to get those customers. Wholesale subscriber adds, on the other hand, don’t cost Clearwire anything to obtain, so even at a discounted revenue rate (which has not been reported by Clearwire) Clearwire is still making a good margin because it doesn’t have to pay the hundreds of dollars per new user in traditional customer-acquisition costs.
There’s plenty more simple goodness like that in the approximately 3,000-word report, including details on the latest Clearwire devices (like the new WiMAX smartphones) and some intelligent discussion about the competitive threat from Verizon’s pending LTE launches later this year. Get up to speed on all things Clearwire by ordering your copy today!
