In a note to clients, Stifel Nicolaus analyst Christopher King said the latest round of financing will probably not cover all of Clearwire's cash needs over the next few years. He expects the company to lose several billion more dollars.
But he added that "Clearwire needs to build out its nationwide network as quickly as possible, as both Verizon and AT&T will begin to quickly catch up with what we believe will likely be a superior 4G network."
Clearwire's second-quarter loss, though narrower than a year earlier, came to $73.4 million. The company reports third-quarter results after the closing bell Tuesday.
So, Sprint and Comcast are investing an additional US$1.5 billion. Google decided against upping their ante in the WiMAX provider. So, is this a near term play? Will Clearwire switch to LTE when they can or will they focus on fixed wireless broadband?