Clearwire Up 4% After Signing Deal with Cricket to Provide 4G Network Resources
Shares of Clearwire (NASDAQ: CLWR) are up 4% after the company announced an agreement to offer resources for Cricket's 4G network.
The companies today announced that they have entered into a five-year wholesale agreement. With the agreement, Cricket will become the second operator to have signed on to leverage Clearwire's forthcoming LTE Advanced-ready network, which will provide capacity off-load services to supplement Cricket's own LTE network. Cricket currently plans to deploy LTE across approximately two-thirds of its current network footprint over the next two to three years and to cover up to approximately 25 million POPs with LTE network technology in 2012.
"The high-speed 4G LTE networks we are deploying will complement our robust 3G network and allow us to continue innovating value for our Cricket customers," said Doug Hutcheson, President and CEO of Leap Wireless International, Inc., Cricket's parent company. "We believe this agreement with Clearwire provides us with an attractive option to supplement our own LTE build-out strategy and gives us the flexibility to access additional 4G capacity where needed as data-centric devices continue to become more popular."
"This long-term partnership with Cricket is a key step forward in the development of Clearwire's wholesale LTE business model," said Erik Prusch, President and CEO of Clearwire. "Not all LTE networks are created equally. We have always believed that our unmatched spectrum portfolio offers a compelling resource that can and will enable wireless operators to thrive in the 4G marketplace of the future. We are very pleased to provide Cricket with additional mobile broadband resources to supplement their own LTE build and we plan to continue to actively seek new opportunities to serve the needs of other 4G providers."
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