Clearwire Dumping Retail Business
According to sources cited by the Wall Street Journal, Clearwire is planning to ditch its retail business in order to focus solely on being a wholesale provider of WiMax access. The Journal's sources say that Clearwire will not immediately shutter is existing 140 retail stores, but will not open any more. Clearwire has been seeking capital since mid-2010. During the fourth quarter of 2010, it announced staff reductions, store closings, and slowed down the progress of building out its WiMax network in order to save money. By halting its retail strategy, Clearwire should be able to save more money during the course of 2011. It has enough cash reserves to operate until the end of the year. The move will benefit Sprint because Clearwire's stores directly competed with Sprint's in selling 4G WiMax access.
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