Clearwire (Nasdaq: CLWR), initially positioned as the way cable partners Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC-WI) and Bright House Networks would get into the wireless business, and more recently feeling financially stranded, has found $1.33 billion to keep building out its networks.
After their initial investments, the cable partners and lead partner Sprint (NYSE: S) had pretty much left Clearwire to its own devices to find money, threatening the life of the fledgling WiMAX network builder. The new funds, acquired through note sales, should keep the company afloat for a while longer as Clearwire also explores options to sell spectrum to raise cash.
Cable has been somewhat ambivalent about the service, which it resells, although Comcast Cable President Neil Smit, in comments at the 38th Annual UBS Global Media and Communications conference, suggested the Comcast is just getting the idea of how to deal with this new medium.
"We've learned a lot about how better to sell that product," Smit said. "We have a 4G/3G package as well as a 4G standalone. We're selling it as a bolt-on to the triple play. We were having troubles integrating and explaining to the customer beforehand but we're seeing growth there."
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