Summary

1.  It seems as if Clearwire is concentrating more on conducting business than in exhibiting at a science fair. 2.  There is probably a good chance that the industry will no longer hear about experiments with topographies, etc. 3.  It should be all about getting the biggest bang for the buck.

Analysis

There is just no way for Clearwire to know for sure that it is definitely going to be able to get beyond a couple of new large cities right away.  There appears to be several reasons as to why both Atlanta and Las Vegas have been placed at the top of the list.  First of all, Clearwire will be in prominent locations on both sides of the country.  Also, even during a recession, particularly in north Atlanta, there is a greater chance of people finding discretionary dollars than in most other areas of the US.  For example, three of Atlanta’s five most affluent zip codes are within Buckhead.  Also in north Atlanta, it appears that sellers of real state are tending to still get over 90% of the requested price.

In Las Vegas, Clearwire is in the casino capital of the world in which the potential for high-bandwidth, wireless service requirements is extremely high.  In addition, both CTIA and the Consumer Electronics Show are both in this city.

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Samuel Greenholtz

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.