Clearwire Shares Dive on Spectrum Sale Announcement
Clearwire Corp. (NASDAQ:CLWR), the struggling provider of wireless-broadband that is no longer profitable, dropped to its lowest price since January after news broke that Verizon Wireless plans to sell pieces of its spectrum, Bloomberg reports.
The company's shares plummeted 6.9 percent to $1.76 by the close of the day, at some points reaching lows of a 20 percent decline. In the past 12 months, the company's shares have sailed southward by 70 percent. Clearwire has not reported an annual profit in more than five years, and may soon be forced to sell some of its own spectrum, which analysts at CreditSights Inc. peg to be worth $4 billion.
According to the news source, Verizon plans to conduct an open-sale process for the 700 megahertz A and B spectrum licenses, which supply mobile capabilities to several major cities in the U.S.
A recent Paragon Report found that spectrum, or the airwaves that mobile data travel on, is nearing capacity. Verizon says the problem has led to dropped phone calls, delayed messages and slower video streams in some of its markets.
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