Clearwire (CLWR) Guns for Giants with New Partnerships, Plans
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Verizon (NYSE: VZ) and AT&T (NYSE: T) may be facing an uphill battle when it comes to trying to get more profit from their fast 4G networks. And that obstacle goes by the name of Mt. Clearwire (Nasdaq: CLWR).
Bloomberg reports Tuesday that small companies like FreedomPop and United Online (Nasdaq: UNTD) are offering some free 4G access utilizing Clearwire's network. FreedomPop is making a case which attaches to Apple's (Nasdaq: AAPL) iPhone and allows for up to 1-gigabyte (GB) or 4G network access. United Online -- which owns NetZero -- is doing a deal for 200-megabytes per month for up to 12-months as long as users buy a plug-in wireless modem.
For Clearwire, it means recouping some of the billions invested in building-out its network. For Verizon and AT&T, it means some of their $12.2 billion in data revs received just last quarter will be threatened.
Of course, the providers will look to charge more down the line...but maybe not that much more. Bloomberg points out how FreedomPop users will be charged one cent for each megabyte used beyond the allotted one gigabyte. Still, for two gigabyte's of data per month wirelessly, roughly $10 sounds like quite a deal.
NetZero will charge beyond the first 200-MB, with an additional 500-MB starting at $9.95 per month. NetZero may also want to read this article before setting that pricing plan in stone.
One Macquarie analyst said FreedomPop probably pays Clearwire about $10 for one gigabyte of capacity.
With Verizon and AT&T both raising prices on plans and eliminating unlimited services, younger people in a cash crunch may be increasingly driven to lower-cost data alternatives. And that should be music to Clearwire investors' ears.
Just don't yodel.
Shares of Clearwire and Verizon are flat Tuesday, while AT&T is indicated higher.
Bloomberg reports Tuesday that small companies like FreedomPop and United Online (Nasdaq: UNTD) are offering some free 4G access utilizing Clearwire's network. FreedomPop is making a case which attaches to Apple's (Nasdaq: AAPL) iPhone and allows for up to 1-gigabyte (GB) or 4G network access. United Online -- which owns NetZero -- is doing a deal for 200-megabytes per month for up to 12-months as long as users buy a plug-in wireless modem.
For Clearwire, it means recouping some of the billions invested in building-out its network. For Verizon and AT&T, it means some of their $12.2 billion in data revs received just last quarter will be threatened.
Of course, the providers will look to charge more down the line...but maybe not that much more. Bloomberg points out how FreedomPop users will be charged one cent for each megabyte used beyond the allotted one gigabyte. Still, for two gigabyte's of data per month wirelessly, roughly $10 sounds like quite a deal.
NetZero will charge beyond the first 200-MB, with an additional 500-MB starting at $9.95 per month. NetZero may also want to read this article before setting that pricing plan in stone.
One Macquarie analyst said FreedomPop probably pays Clearwire about $10 for one gigabyte of capacity.
With Verizon and AT&T both raising prices on plans and eliminating unlimited services, younger people in a cash crunch may be increasingly driven to lower-cost data alternatives. And that should be music to Clearwire investors' ears.
Just don't yodel.
Shares of Clearwire and Verizon are flat Tuesday, while AT&T is indicated higher.
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