Clearwire is hurting for cash and has been implementing strategies to save up since fourth quarter last year with cutting jobs and canceling some retail launches. However, according to the WSJ‘s sources, it has now officially decided to abandon its retail operations and focus on growing its network as a wholesale 4G WiMax provider.
According to the report, the company does not plan to immediately shut down its 140 retail stores throughout the nation and has not confirmed a timeline yet. It is likely that more details will surface on February 17th when they announce their quarterly earnings.
Clearwire’s major investor, Sprint, has been against their retail operations strategy since the beginning as it competes against Sprint’s brand and takes cash away from finishing network expansion. It is speculated that with this new strategy to shutdown the retail operation Sprint may further fund the company.
Update: Clearwire has been in touch to point out that the story is something the Wall Street Journal reported based on unnamed sources. Clearwire did not officially announce anything today and has no comment on the story. The company has scheduled its Q4 financial results announcement for Feb 17 and will have more information on future plans at that time.