Clearwire Corp., the new business formed by Sprint Nextel and Clearwire, will have 30 million customers in nine years, company executives told investors today.
The company will offer a suite of both fixed and mobile voice and data services to residential and business customers, Scott G. Richardson, Clearwire's Chief Strategy Officer, said during a Webcast.
The company said those services will generate $17.5 billion in annual revenue by 2017 as customers sign up for a variety of new services.
Clearwire told investors the company will have millions of customers before its potential competitors -- Verizon and AT&T --even launch their service. Those two companies have selected a competing technology that's still in the development phase for their fourth-generation wireless networks.
Under attack from analysts and defending itself from reports it will be dominated by Sprint Nextel, Clearwire laid out its business plan and timetable.
"By merging Sprint's WiMax business with Clearwire, we have all the key elements to build the communications company of the future today," said Clearwire CEO Benjamin G. Wolff.
The new Clearwire was formed by Sprint and Clearwire with $3.2 billion in financing from Comcast Corp., Time Warner Cable, Intel, Google and Bright House Networks.
Wolff also outlined how those companies, including Sprint, will use Clearwire's service, offering it to their customers.
However, Wolff reacted to some reports that Sprint would be in control of the new company, and that a board of directors dominated by big-name tech CEOs would have difficulty reaching consensus.
Wolff said Sprint will control 7 of the 13 seats on the Clearwire board, but added that one of those positions must be an independent director.
"Sprint doesn't control the company," Wolff said.
Sprint is a joke! The couldn't operate their way out of a paper bag!! I just wonder how all those "Sprint" long-term employees can wake up in the morning, look in the mirror, and convince themselves they and their company aren't the laughing stock of the telecom industry. They have always been last as its in their DNA. Over the years, they try to convince themselves they and their company is serious players. After enought time goes by, they actually trick themselves into believing that to be true. Yes, Clearwire investory want to know that "Sprint" won't screw up the new venture like they did to Nextel!! McCaw and Donahue will be laughing all the way to the bank once this story plays out..