Mortgage Troubles Could Help Out Clearwire

Author: Philip Solis, Principal Analyst, Mobile Broadband

Sun, 14 Sep 2008 20:17:12 EDT

It is interesting to notice the positive effect that poor home sales and foreclosures have on Clearwire's network.  It seems that educational institutions are losing their tax base when homes foreclose.  The negative effect on funding for schools has to be compensated for somehow.  Many of these educational institutions have an asset they can leverage, which is timely given the timing of Clearwire's network buildout - rights to 2.5 GHz spectrum.  These educational institutions were in general always interested in working out a deal with Sprint and Clearwire, but the tough economic times may push them into working out deals a bit faster.  This will work out nicely for Clearwire, who already has a significant amount of 2.5 GHz spectrum.  For an example, see this article.

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