Clearwire to Acquires WiMAX Gear from Cisco

arwire (CLWR) definitely has the skill to line up allofficer, among the other plans to expand the
the powerful partners and clients. Thestaff by more than 50% this year.
communications service providers has the backBy announcing a deal with Cisco the Clearwire has
support of most of the tech titans such asreserved the most of fanfare. Buying Gear from
Comcast (CMCSA), Intel (INTC) and Googlethe vendor might help Clearwire expand in the
(GOOG) and now, Clearwire has a new partner:market for corporations and small businesses, as
Clearwire have announced on May 13 that it wouldper Clearwire Chief Strategy Officer Scott
begin to buy devices and equipments from noneRichardson. Currently, Clearwire's offerings are
other than Cisco Systems (CSCO), themainly targeted at consumers.
world’s numero Uno in the making ofCisco’s Linksys division which is mostly
networking gears.involved in making Wi-Fi access points for home
They have released the financial results the samewill provide a range of devices based on WiMAX
day and it clearly shows why Clearwire needstechnology. It will appear in the market later this
friends who are in high-tech places. The companyyear. Cisco is also expanding its consumer device
is dealing with slow subscriber growth, wideningrange and has recently acquired Flip camcorder
losses, and has concerns over the pace at whichmaker Pure Digital Technologies.
it can enter new markets.Cisco is eyeing for WiMAX Network Business
In the first quarter, Clearwire added 25,000Clearwire is also all set to line up its end user
subscribers, which is just over the half thegadgets. They have Samsung who will be
number of new users which were signed up areleasing the WiMAX enabled laptops this summer.
year earlier as it shifted its focus on new productCisco assumes that the agreement may perhaps
mix. The company is a leader in technologyopen doors to more WiMAX network businesses.
known as WiMAX, which delivers high-speedCisco has tried hand in WiMAX since its 2007
wireless Internet access, ended the period withacquisition of WiMAX equipment vendor Navini, but
500,000 subscribers. Sales rose 21%, to $62.1it has yet to make its place in the market valued
million, while its loss ballooned to $260.6 million,at $1.8 billion last year and dominated by Motorola
from $97.4 million. Shares tumbled 10.5%, to 5.09.(MOT), Alcatel-Lucent (ALU), and Alvarion (ALVR)
Will Cisco Gear meet the corporate demands?lately. Earlier this year, Cisco said it had won
To meet up with the growing challenges,several WiMAX contracts in the Eastern Europe.
Clearwire CEO Bill Morrow announced sweepingThe agreement is also to boost up the WiMAX
management changes. COO Perry Satterleetechnology. Few of the WiMAX’s and
stepped down, with the company not announcingCisco’s hold it will be predicted on how
a replacement. Bill Morrow, who took over insuccessful Clearwire will be in attracting users and
March, brought in former Lenovo executive G.competing with the current carriers like AT&T
Michael Sievert as the company's new chiefand Verizon Wireless in mobile broadband. But the
commercial officer. Clearwire has also appointedcollaboration with Cisco might turn out to be
Kevin Hart as the new chief information officerbeneficial for Clearwire and remove some of the
and Laurent Bentitou as the new chief peopleuncertainties.