Clearwire (CLWR) Jumps Higher As Partner Sprint (S) Discloses LTE Deal
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Shares of Clearwire (Nasdaq: CLWR) are on the move Wednesday after partner Sprint (NYSE: S) disclosed the signing of non-binding cooperation agreement on the company's LTE nework.
"We are pleased to announce that we have signed a non-binding cooperation agreement with Clearwire to work together on the technical specifications of the Clearwire LTE network and to ensure a superb customer experience for Sprint customers on the Clearwire LTE network, Sprint CEO Hesse said on today's earnings conference call. "The cooperation extends to the design and operations of the network and ensure seamless handoffs and service layer control that meet Sprint's customer experience requirements, cover the cell site selection and timing of site builds and involves working with OEMs to design devices and to include certain chipsets in devices."
Mr. Hesse said the agreement was necessary to reach this agreement in order to clear the way to begin the negotiations of commercial terms under which Sprint may utilize and pay for access to the Clearwire LTE network
"A definitive agreement would allow Sprint to meet its objective to further improve the customer experience and to manage fixed network costs by offloading some 4G usage from its own LTE network onto the Clearwire LTE network and thereby benefit from Clearwire's large spectrum portfolio on a resale basis," Hesse continued. "Those discussions are ongoing and the terms resulting from those discussions, if any, will be disclosed only at such time that a definitive and binding agreement has been reached by the parties."
Shares of Clearwire are up 20 percent to $1.97 in mid-day action.
"We are pleased to announce that we have signed a non-binding cooperation agreement with Clearwire to work together on the technical specifications of the Clearwire LTE network and to ensure a superb customer experience for Sprint customers on the Clearwire LTE network, Sprint CEO Hesse said on today's earnings conference call. "The cooperation extends to the design and operations of the network and ensure seamless handoffs and service layer control that meet Sprint's customer experience requirements, cover the cell site selection and timing of site builds and involves working with OEMs to design devices and to include certain chipsets in devices."
Mr. Hesse said the agreement was necessary to reach this agreement in order to clear the way to begin the negotiations of commercial terms under which Sprint may utilize and pay for access to the Clearwire LTE network
"A definitive agreement would allow Sprint to meet its objective to further improve the customer experience and to manage fixed network costs by offloading some 4G usage from its own LTE network onto the Clearwire LTE network and thereby benefit from Clearwire's large spectrum portfolio on a resale basis," Hesse continued. "Those discussions are ongoing and the terms resulting from those discussions, if any, will be disclosed only at such time that a definitive and binding agreement has been reached by the parties."
Shares of Clearwire are up 20 percent to $1.97 in mid-day action.
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