Free Essay

Clairewire

In: Business and Management

Submitted By selvyana
Words 2030
Pages 9
Before you start this exercise, read Chapter Extensions 1 and 2, which describe collaboration techniques as well as tools for managing collaboration tasks. In particular, consider using Google Docs & Spreadsheets, Google Groups, Microsoft Groove, Microsoft SharePoint, or some other collaboration tool.
Reread MIS in Use 6 on page 126.Clearwire has not implemented full WiMax, and in fact the company is simulating it using existing wireless and wired telephone technology. In May 2007, Clearwire did conduct successful test of limited portability using the 802.16e standard (http://investors.clearwire.com/phoenix.zhtml?c=198722&p=irol-newsArticle&ID=1004778) in Portland, Oregon, in essence, a very large wireless hotspot. Instead if wireless in a coffee shop, it is wireless over a several-mile or larger region. True portability is yet to come. Clearly this is a complex situation. with people like McCaw, with Clearwire’s partners, and with the promise of the technology, there is some major promise here. But what? What technology works today? What is Clearwire’s true capability? How do its products and capabilities compare to, say , iPhone connectivity? Why did the venture need $3.2 billion? How much more will it need? Would Clearwire be a good investment today? You and your team can find out in this assignment as you answer the following questions.
1. What is the current situation?
a) What technology is operational today?
b) What products are being offered?
c) How many customers does clearwire have? Where are they?
d) What us Clearwire’s current revenue and profitability? (you can find out because Clearwire is a public company.)
2. What is Clearwire’s near term (2- to 3-year) opportunity
a) What does the company plan to do with the $3.2 Billion raised in May 2008?
b) What new WiMax technologies does it expect to develop in the next 2 to 3 years?
c) What new products will it offer?
d) What are its projections for the number of customers, revenue, and earnings in the near term?
3. Who is Clearwire’s competition?
a) Compare and contrast Clearwire’s capability with that of the iPhone.
b) Besides the iPhone, Who else is in competition with Clearwire
c) How will the competitive landscape change in the next few years?
4. Assume that Clearwire is successful. Identify five opportunities that success will create for you. Use the example of Larry Jones in Case study 6 to stimulate your thinking, but do not constrain yourself to the campus market that he considered

1. A. Now, Clearwire has the newest technology for their system, named “LTE Advanced-ready”. By using this new technology, they want to catch densely populated, urban areas of their existing product where current usage demands are high. LTE Advanced-ready can achieve download speed exceeding 120 Mbps. That speed really coddles the customer for only browsing, even download and upload. Nowadays, People look for product which is simple but with high benefit. In addition, “LTE Advanced-ready” uses an ultra-high-capacity spectrum configuration. “In addition. The 2.5 GHz spectrum band in which we operate is widely allocated worldwide for 4G deployments, enabling a potentially robust, cost-effective, and global ecosystem that could serve billions of devices, “ John Saw said. He is the Chief Technology Officer of Clearwire. “LTE Advanced-ready” can bring Clearwire to the top position of wireless provider company in United States. (Source: http://www.clear.com/discover)

B. Basically, Clearwire runs in wireless provider so that people can connected to the internet wherever and whenever they one. Clearwire has some products, such as Clear spots, USB modems, Home Modems. Each others have different capability and features although in same function, for connecting to internet. These are the specification for each products. (Source: http://www.clear.com/devices)

Clearwire decides their product by three kinds. They are..

(Source: http://corporate.clearwire.com/products.cfm#)
Clearwire has some models and types depends on their specification. These products give many choices for costumer to choose what product which is suitable with the needs each customer.

C. The Clearwire now reaches about 30 million people in the United States. Their network expansion is one of the fastest one in history. They are also the fastest growing companies in the wireless industry. They have been serving more than 4.4 million customers and expect reaching more than double subscriber in 2011. The customers spread across United States in more than 70 markets. They are small state until important states in U.S., like Washington D.C., New York, and California. {Source: http://www.clearwire.com/company/our-company)

D. As the end of December 2010 clear wire revenue is $ 556,826,000 and ( I can’t find the profitability )

2 A. They want to expand their connections by merge with Sprint Nextel wimax 4g connections with their existing pre-wimax connections and branded as CLEAR

B. The company wants to develop the new technology LTE Advanced-Ready it means they want to make a fast downloading connection into mobile, the speed is aroun 100 Mbps and it become future of mobile dbroadband

C. Clearwire, a few days ago has announced its cooperation with China Mobile on TD-LTE Devices. This means, by the next days it will offer a new product to foster a strong ecosystem of devices that support multi-mode devices, multi-band components with minimal cost complexity. These two companies will work jointly to further accelerate the time-to-market availability of high volume TD-LTE chipsets and devices that should be commercially available starting in 2012. In addition, they will collaborate to enable worldwide data roaming among TD-LTE, FDD-LTE and other 2G/3G networks. Moreover, they also expect to launch a next-generation LTE network that will offer more capacity than any other 4G network in the United States.
D. By the cooperation between Clearwire and China Mobile, the projections for the number of customers, revenue, and earnings will also be expected in the near term. Clearwire expects that because of the less cost in its new products, perhaps they will give some impacts in boosting the production, while its customers will be increase in number too. However, if the number of customers were increased, then Clearwire will get benefit from its product revenues, as its earnings will be increased too. In addition, John Stanton, as an Executive Chairman of Clearwire, also expects that this kind of development will bring benefits from a device ecosystem aimed to support billions of potential users worldwide. This unmatched scale should reduce costs and increase choices for Clearwire’s customers in the years ahead. (Picture for number 2c and 2d is taken from: http://corporate.clearwire.com/releases.cfm [China Mobile and Clearwire Announce Collaboration on TD-LTE Devices. Sep 14, 2011] – with some editing)
These below are Clearwire’s recent products:
USB and Home Modems

Personal Hot Spots

Rover (Pictures above are taken from: http://corporate.clearwire.com/products.cfm#)

3. A. Clearwire and iPhone, both of them are competing in give the best wireless service to their customers. While Clearwire uses WiMax as their support, so does the iPhone is equipped with LTE to generate its latest technology. Here, we would like to give some comparisons between the capability of Clearwire (using WiMax) and iPhone (using LTE):

Clearwire (WiMax) iPhone (LTE)
Capable of symmetrical speeds of up to 70Mbps(slower) Capable of supporting downlink and uplink speeds of at least 100Mbps and 50Mbps(faster)
Speeds are tend to be inconsistent Speeds stay consistent and similar
Its devices and equipment are easier to implement Harder to implement (compatible with existing GSM and HSPA networks – a SIM card is needed)
Example of company using Clearwire (WiMax): Sprint Nextel Corp. Example of company using iPhone (LTE): AT&T Inc.
Available and guaranteed only for short term Predicted to be profitable in long term
Costs needed Starts at $99.99/month Starts at $129.99/month
Unlimited Nextel Direct Connect® +$9.99/month for unlimited push-to-talk
Unlimited text messaging +$20/month for unlimited text messaging
Unlimited Sprint TV® +$30/month for TV
Total = $99.99/month (cheaper) Total = $179.99/month (higher)

B) Besides competition with iPhone,Clearwire has competition with Verizon. Competition between Clearwire and Verizon, which are today the two largest 4G operators in United States, is now intensifying. Verizon will be offering very similar speeds as Clearwire and, starting 2011, more attractive devices including LTE smartphones and tablets.
Source : http://lteworld.org/blog/verizon-vs-clearwire-4g-comparison
C) on few years I think clearwire will the competitive landscape will improve because as a competitor they have a plan to increase their sales on their provider. Clearwire now rise in shares, that’s why Clearwire can improve their competitive landscape, Source : http://finance.yahoo.com/q?s=CLWR&ql=0
4. Since, the connectivity of modem is lower—it is ussualy can not more than 60 kbps—than wireless hotspot, modem has no banefit. Moreover, Wireless hotspot more profitable, efficient, and effective to use. Assume Clearwire is successful with his business, it possibly make other opportunities for us to make branches from his business. We can expand more wireless hotspot from his business. For example, Larry Jones in study case 6. He can set up LAN with internet connection from his fraternity house, and his business can be expanded not only in campus, but also in local apartment and condominiums. We can also do the same. We can expand business like Larry Jones in opportunities since use modem is not popular anymore.
- Educational Institution
There are located in another campus, senior high school, junior high school near our campus. Nowadays, educational institutions need internet supporting to do their task or learn something beside their textbook. Especially when they do their task, they need fast connection because they have less time. So, it will be good opportunities for student. This way will make high profit for me because institution like this never leaves abroad information or methods to be still up-to-date every times. On the other hand, Clearwire also help this institution especially student to get easily access for internet.
- Offices Area
Offices use internet connection for connecting with other people. It is not only with their business relatives, but also their customers. They should use fast internet connection to simply their time, since they have a lot things to do. They can inform their product to costumer, especially in delivery service company, they can inform the customer package via internet. For example, when we use TIKI to deliver our package we can check where is it now by tracking via internet. The employees of TIKI use internet to send the data to their database of our package now. Fast internet can make efficienct and effective the job.
- Apartment
Almost people who live in apartment are in medium to high class people. They will need faster internet connection than modem to help them connect with other people outside and many things. For example, it can help them to learn something, open social network, and do their business at their apartment. It will be more profitable for apartment management to offer their room to the costumer. Since, wireless hotspot will be held as the facility of their apartment.
- Trading Center (Mall)
Mall or trading center can use wireless hotspot to increase their visitor and buyer. Since, wireless hotspot is popular, people—especially teenager—will be interest in place that provides hotspot facility. It can increase amount of visitor or buyer and exactly profit. I can enter from this thought as my oppurtunity of business

- Residence
Many people who live in residence need internet connection which is cheaper and faster than using modem. Modem sometimes aggravates because it is small and has big probability to lose. Moreover, when someone is in urgent condition. Wireless hotspot can be a way out. It is used by them to full fill their need of information more efficient and effective. Internet can help them such as, when houswife needs recipe information, easily can be found by searching via internet. “More beneficial things can be done via internet”, that motto that i will reach by expanding my oppurtinity in wireless provider.

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