Clearwire May Miss Debt Payment, Cause Trouble For Sprint

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Holly Golightly

November 30, 2011 at 4:11pm

Yeah, I think Sprint must rescue Clearwire. Gosh, I hope Sprint does not buy them out, but it seems rather inevitable. I am waiting for Clearwire to switch from WiMax to LTE. They should focus first on their network before making their payments, as their consumers are their only source of income. Without consumers, they could not make their payments in the first place, so I say they should focus on their consumers first, and the consumers demand a faster network.

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triptych

November 30, 2011 at 9:40pm

Put it this way, if you had a $237million debt payment would you blow the money on new tech and risk going under? Not likely, unless you enjoy living out of a cardboard box. One of the biggest factors that has caused financial hardship in the U.S. is the inability to do what makes perfectly logical sense: paying off debt. If Clearwire thinks a 30-day grace period will give them enough time to scrounge up some more money, why not delay their LTE expansion? I'm a Sprint customer and while I don't enjoy the morbidly slow speeds of WIMAX, I'd much rather a delay in LTE capability than a decrease in network capacity.

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Holly Golightly

December 01, 2011 at 11:22am

Paying off debt has nothing to do with network capacity. If they have enough money to build up their network, then the more new customers than can attract. Plus, with faster speeds, they can charge higher prices to help satisfy their debtors. Right now Clearwire does not have enough consumers to meet their demands. Let them get more customers first, and then they can start talking about debt repayment... Otherwise their current customers will leave and that would be really hbad for clearwire if they are known as the slowest mobile broadband.

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std error

November 30, 2011 at 4:55pm

Explicit debt contracts with bondholders are more important than the implicit contracts with consumers. Most companies and governments won't even exist without the support of their bondholders as demonstrated by the Euro crisis.

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Holly Golightly

November 30, 2011 at 5:20pm

Okay, let's not get a little ahead of ourselves by comparing a broadband company to a government entity. Companies receive money from their customers that they do not have to pay back. Bond holders, Stake holders and Stock holders demand their money back, while customer pays the company with revenue. I would say it is more important to keep your customers. Because without customers, how could they ever repay their greedy investors? Think.

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whathuhitwasntme

November 30, 2011 at 7:15pm

so when I INVEST MY MONEY, I am the greedy one?

 

You seriously need to adjust your view of the world lady.

 

Investors are not greedy, they are people like you and me, or mom and dad who take their hard earned money and put it into a company to use for a return payment at a later date for an agreed amount.

Greed is when you want something that is NOT YOURS to take. A fair return on using my money for a given period of time is not greed. GREED is the government coveting what is not theirs, when they see a corporation who inovates and brings new products to market at their own cost, and then the regulators tax it to death to fund their own worthless pork and useless projects for that fill the coffers of their cronies.

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Holly Golightly

December 01, 2011 at 11:28am

Of course investors can be greedy. Bernie Madoff proved that long ago. Many holders want money and only money. They are not hard workers. They just live off their inheritances. Why would they ever care about some company and their customers? In the end, these holders will rob you blind. All for the sake of the Al Mighty dollar. Tisk, tisk. Nobody is a honest hard worker anymore. Maybe back in the 1920s, but not now.

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whathuhitwasntme

December 02, 2011 at 3:20pm

ok first off Madoff was not an investor he was a thief. Plain and simple a confidence man running a Ponzi scheme.

Investors, they were they ones that LOST ALL THE MONEY HE STOLE!

SO while you are sure all investors are greedy pigs, you need to go open your own grocery store, power company and car company to make your own stuff. Because with out investors like me and millions of other regular people, they wouldnt make any of the stuff you use EVERYDAY!

You want to live back in the days of the 1920's? get off the  internet, and go find a husband. You wouldn't be allowed here!

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Holly Golightly

December 02, 2011 at 5:53pm

Okay... Let's stop thinking about the past here... Things aren't the way they were like the good 'ol days. First off, there are no such things as investors. They are called holders. Whether it be stocks, bonds, or mutual funds. An investor would invest his or her money in a new business and watch it grow. Today, share holders invest in large multinational corporations like Microsoft and Google. They are very successful businesses and do not need your money to stay in business. They need customers if they want to keep making their payments however. Without customers, there is no economy. I do not care it everyone in the entire world is an investor, if nobody is buying, the business will sink in debt. If you identify yourself as "a regular person" then it is natural to assume you are definitely not the top 1%. Anyhow, there will be more Ponzi schemes to come. Maybe you'll wake up and see that as a regular person, that you are a part of the 99% who are the actual customers.

"Things ain't the way they used to be."

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std error

November 30, 2011 at 6:03pm

Customers give money because they get a service made possible by capital financing from bond holders. Without the financing there would be no service available in the first place.

Would you buy a car from a car manufacturer without a factory?

Now don't go and say that they wouldn't build a factory without customers to buy because the existence of customers is not guaranteed at the time to build a factory (some businesses fail). What is guaranteed is that there will be no factory if there was no financing.

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Holly Golightly

November 30, 2011 at 6:50pm

Of course all businesses need to start up with some money. Not every business begins with a bond. Heck, sometimes they can not start up a businesswith just bonds alone. Junk bonds don't always sell. Clearwire could have started up in the form of a partnership. They could have always got a business loan from a bank like many retailers have started. There are other ways of starting up a business, and there is no one particular rule. Of course, all businesses need customers if they want to stay open. The point of a business is to give the best you can for your consumers. If they are loyal, then the business will secure more profit in the future to pay whoever it is they owe money to.

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