Summary
Clearwire's 10 Q is confusing about its relationships with and commitments to Intel.
Analysis
The description in the August, 2009 10Q of Clearwire about a Collaboration Agreement with Intel is confusing. It states among other things: "Clearwire and intel have agreed to share the revenues received from subscribers using Intel mobile computing devices on our domestic mobile network. Intel will also receive a one time fixed payment for each new Intel mobile computing device activated ob our domestic mobile WiMAX network once we have successfully achieved substantial mobile WiMAX network coverage across the United States. Through June 30, 2008 (sic) we have not been required to make any payments to Intel under this agreement. This Agreement is scheduled to be terminated upon the closing of our pending transaction with Sprint (emphasis added)." Two obvious questions are: (a) Is 2008 a misprint for 2009, and (b) What is this pending transaction with Sprint? If it refers to the new Clearwire then the transaction has been completed (on November 28, 2008), so this revenue sharing agreement between intel and Clearwire is no longer in force. On the other hand a Market Development Agreement with Intel does seem to be in force, which for now restricts Clearwire's freedom to use a wireless network technology other than WiMAX until November 28,2011. I hope that Clearwire will clarify this confusing situation.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
