Clearwire Corp. on Wednesday posted higher losses in the second quarter compared to a year earlier, but more customers signed on to use the companys 4G network than analysts expected.
In all, Clearwire, whose majority shareholder is Sprint Nextel, lost $125.9 million in the second quarter, up from losses of $73.4 million in 2009s second quarter as overhead expenses mounted. Sales, though, almost doubled, to $122.5 million, as 722,000 customers signed contracts.
Clearwire reported its earnings the same day it said it is launching the iSpot personal 4G hotspot for Apples mobile devices. Plus, Clearwire will add LTE technology to its 4G lineup the company so far has specialized in WiMAX but has talked of adding LTE, the 4G choice of AT&T Inc., Verizon Communications Inc. and a number of other providers.
Clearwire ended the second quarter with 1.7 million users 940,000 retail subscribers and 752,000 wholesale customers.
By the end of 2010 we now expect to have approximately 3 million total subscribers, a significant increase from our previous guidance of just over 2 million subscribers,” Bill Morrow, Clearwires CEO, said in a prepared statement. The pent-up wave of demand for mobile broadband service is evident, and Clearwire is riding our expanding 4G network and growing wholesale distribution model towards a promising second half of 2010.”