Collaboration Exercise 6 Question

1.What is current situation? a. What technology is operational today? b. What products are being offered? c. How many customers does Clearwire have? Where are they? d. What is Clearwires current revenue and profitability? 2.What is Clearwires near term (2 to 3 year) opportunity? a. What does the company plan to do with the $3.2 billion raised in May 2008? b. What new WiMax technologies does it expect to develop in the next 2 to 3 years? c. What new products will it offer? d. What are its projections for the number of customers, revenue, and earnings in the near term? 3. Who is Clearwires competition? a. Compare and contrast Clearwires capability with that of the iPhone b. Besides the iPhone, who else in the competition with Clearwire? c. How will competitive landscape change in the next few years? 4. Assume that Clearwire is successful. Identify five opportunities that its success will create for you. Use the example of Larry Jones in Case Study 6 to stimulate your thinking, but do not constrain yourself to the campus market that he considered.

Answer
1. a. Clearwire offering wireless broadband internet service by radio frequent with open IPnetwork combined with significant spectrum holdings. b. Clearwire is broadband internet service provider cover U.S area, the company concentrated on wireless product for internet on-the-go usage and also residential voice services. The products that released through Clear are: I. Clear Spots A compact wireless hotspot modem that connect internet by spectrum holdings in coverage area. It can share the internet connection up to 8 devices. II. USB Modems Similar with clear spot, but only can be use for one device (laptop/netbook/notebook). III. Home Modems A stationery modem provides internet service for home user (stationery). c.As of December 31, 2010, Clearwire claimed their networks covered an estimated 117.1 million people in the United States and Europe. In the United States 4G mobile broadband covered major metropolitan area such as Atlanta, Baltimore, Boston, Chicago, Cincinnati, Cleveland, Columbus, Dallas, Honolulu, Houston, Kansas City, Las Vegas, Los Angeles, Miami, New York, Philadelphia, Pittsburgh, Orlando, Salt Lake City, San Antonio, San Francisco, Seattle, St. Louis and Washington D.C. Moreover in Europe area, their Pre-4G network that collaborate with Motorola Solutions Inc. covered estimated 2.9 million people in 4 markets, including Seville, Malaga, Brussels, and Ghent. d. The company revenue in year 2010 is $556,826,000 2. a. The Old Clearwire merged with Sprint WiMax business to form and independent company called Clearwire. The company planned to create 4G network with WiMax technology, an internet service based on wireless modem combined with spectrum holdings for mobile usages. b. The WiMax technologies are expected to growth faster and more stable in terms of connectivity. At the short run in 3-4 years, switching WiMax to LTE seems to be better solution. In other word, WiMax technologies having trouble to establish reliable internet service comparing to cable/DSL system. It is often argued, WiMax are exceeding lack of bandwidth if there are crowded usage in one sector. c. For now maybe clearwire doesnt need to offer new products, but they should give offer to customer if they want to upgrade their old modems into Clearwire modem. It will be raise the market share of WiMax if many customers think that they should change their modem into the best one. d. For the customer, clearwire want to get more than before. It shows on how the market strategic that clearwire make. All of it show that clearwire want to make improvement and get more customer. For the reveneu, Clearwire achieve their goal to make the revenue rate add significantly. You can show it on annual report of Clearwire each year. Because of the high rate of customer and revenue, clearwire got more earning in each quarter in a year. So, for make Clearwire always like this condition, they should make quick and good improvement and provide good after sales with the best service.

3. a. Clearwire is using WiMax and Pre-4G technologies with the wireless IP and fixed VOIP telephony service based while Iphone is using Quad-band, GSM/GPRS/EDGE (800 850 900 1800 1900 MHz and Quad-band UMTS/HSDPA/HSUPA (800 859 900 1900 2100 MHz). A recent report from the Cisco Visual Networking Index projects that mobile data traffic will have increased a thousand-fold over the seven years from 2005 to 2012, with video driving most of the worlds mobile traffic growth. According to this report, a single high-end smartphone such as the iPhoneTM or BlackBerry generates more data traffic than 30 basic-feature cell phones, while a single laptop air card generates more data traffic than 450 basic-feature cell phones. b. The company competing with internet service provider with cable modem and DSL system, satellite based system, and also free WISPs and Wi-Fi provider, yet conventional telecommunication provider are included in competition. c. Clearwire should make some improvement in their product and make it always lead the market shares.

4. Nowadays, internet connection is very important for all of people. Almost all activity use network as primary daily needs. We can not use 3G modem anymore as primary device for connect to network because the connection speed from 0 kbps to 312 kbps but usually we get connection speed about 60 kbps. It is very slow connection. If Clearwire success on his business for provide 4G modem technology to us, we can make some business which very profitable from that. We can also do the same or more than Larry Jones in study case 6. For example, we can make some tower for internet network and provide some organizations, instantion and etc, such as: a. Cafe: This place usually use by teenager for hangout. If Clearwire success build 4G network, we can sell or promote the 4G modem in the cafe. Or make some cooperation with the manager of cafe to provide the customer with wifi network. Although the cafe must spend additional charge for subscribe, but they will get more customer because the customer will satisfied with the service or facilities in the cafe b. Hotel: Hotel is the place for rest for some business people or traveler. Business people always need connectivity in all condition. So, if the management of hotel can give wifi network as additional facilities and the customer should pay some charges for use it, and it will be very usefull for customer who always need connectivity. That is nothing if the speed rate is slow. It means they should use Clearwire clear spot which have 4G network. We can make sure it will be raised the satisfaction rate of customer in this hotels and it will be profitable business for us. c. Office: All of offices always need internet connection, such as in a Bank. Bank need very fast connection for store data to the server. Its very annoying if the computer network in bank has crashed because the slow connection. To solve this problem office should use Home modem, because with this thing which have very fast data connection,office will not face some problem about the slow connection of network. It can make all of sector on the office running well at anytime.

d. Mall or Department Store Usually people will go to the mall if they want to hang out or just look around and buy something. Management of mall can increase the customer if they provide wifi hotspot in the mall. It is because wifi hotspot is the favorite connection of many people since they dont want to pay some charges. If the number of customer increase, it will make the mall more profitable than before. e. Real Estate Since the trend to use internet network as lifestyle in life, every people feel that they should have it. In this case real estate provider can give some offer to the society about their residence which have wifi spot in whole residence. We think this is the best facilities that can make people attract to buy in this residence or real estate.