UPDATE 2-Clearwire adds Huawei as WiMax supplier

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Tue Aug 11, 2009 11:16am EDT

* Huawei contract lasts 3 years

* Clearwire also using gear from Motorola, Samsung

* Plans installing 20,000 base stations for $150,000 each

* Clearwire shares down 1 percent (Adds Clearwire comments, updates shares)

NEW YORK, Aug 11 (Reuters) - Clearwire Corp (CLWR.O) said on Tuesday that China's Huawei Technologies Co [HWT.UL] would supply network equipment for a new high-speed wireless network Clearwire is building.

Huawei is joining vendors including Motorola Inc MOT.N, Samsung [SAGR.UL], Cisco Systems Inc (CSCO.O), Ciena Corp (CIEN.O) and DragonWave Inc (DWI.TO), in helping Clearwire build the nationwide network, based on WiMax technology.

Along with the other vendors, Huawei will provide Clearwire base stations and other key infrastructure parts under a three-year contract.

The companies did not give financial details about how much each contract is worth. Clearwire estimated that it would need to spend about $3 billion to build a national network including the installation of about 20,000 wireless base stations at a cost of about $150,000 each.

While Huawei has supply contracts with smaller North American carriers such as Leap Wireless (LEAP.O) and Telus (T.TO), it has yet to win business at the biggest U.S. operators Verizon Communications (VZ.N) and AT&T Inc (T.N).

Clearwire's chief technology officer John Saw said on a conference call that the company chooses its vendors based on price and performance. He declined to say how much of the $3 billion spend would go to each.

WiMax promises Internet connections at speeds similar to wired connections but without the short range limitations of Wi-Fi, another wireless Internet technology.

Clearwire, which is 51 percent owned by Sprint Nextel Corp (S.N), already offers WiMax in markets including Baltimore, Maryland, and Portland, Oregon, and has said it plans to bring the service to more than 80 markets by the end of 2010.

It is scheduled to report quarterly earnings after market close on Tuesday. Shares of the company were down 1 percent at $8.14 in morning trade on the Nasdaq. (Reporting by Ritsuko Ando and Sinead Carew; Editing by Derek Caney and Robert MacMillan)

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