IDG News Service - WiMax service provider Clearwire raised more than $290 million in a rights offering that expired on Monday, building up its war chest while it deploys a national 4G network.
Sprint Nextel holds a majority stake in Clearwire.
Investors in the offering exercised rights to purchase about 39.7 million shares in the company for an aggregate price of approximately $290.8 million, Clearwire said. The rights offering, which commenced last December, could have raised as much as $361 million if it had been fully subscribed.
Clearwire has launched commercial WiMax services in 34 markets around the U.S., reaching about 51 million potential subscribers. Sprint, Comcast and other service providers resell the service in many areas.
It plans to offer the service in all major U.S. markets by the end of this year, which would offer access to some 120 million people. New York, Los Angeles and San Francisco are among the cities expected to gain access to the service this year.
Verizon Wireless expects to be selling its own 4G service, using LTE (Long-Term Evolution) technology, in 25 to 30 markets by year's end.
Clearwire has estimated it will spend between $2.8 billion and $3.2 billion on the network by year's end but said it can have a sustainable business with a network of that size.
Last month it reported a net loss of $439 million, with revenue of $107 million, for the first quarter of the year. But the company also said it added 283,000 subscribers in the quarter, more than in all of 2009.
Free Insider GuideCopyright © 1994 - 2012 Computerworld Inc. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Computerworld Inc. is prohibited. Computerworld and Computerworld.com and the respective logos are trademarks of International Data Group Inc.
