Clearwire, WiMax face uphill battle vs. tight credit

Looks like 3G is going to be around for awhile.Today's Wall Street Journal notes that Clearwire's plans to rollout its Clear WiMAX network faces hurdles thanks to the still-tight credit markets.

WiMax
Looks like 3G is going to be around for awhile.

Today's Wall Street Journal notes that Clearwire's plans to rollout its Clear WiMAX network faces hurdles thanks to the still-tight credit markets. Though Clearwire Corp.'s recent merger with Sprint Nextel's wireless broadband unit put the company on more solid financial footing, it still faces challenges as it tries to overcome rivals by rolling out its new fourth-generation mobile Internet access.

Just a few months ago, Clearwire said it could draw out the timing on its network build-out if it wasn't able to raise money at reasonable rates. According to reports, the company said it has to raise up to $2.3 billion to cover the gap between the costs of its nationwide WiMAX build-out and the $3.2 million invested in the venture by Google and cable companies. But it may be an even bigger figure.

Does this slow Clearwire so much that the company loses pole position in the 4G push?

Perhaps, depending on how quickly other carriers move to Verizon LTE (fittingly, "Long Term Evolution"). On the other hand, Clearwire may have a price advantage over LTE services.

The problem, of course, is that delays the company's profits considerably -- according to one analyst, all the way until 2015.

Related reading:

[techmeme]

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