Clearwire Subject to “No-Shop” Restriction and 4 Telecom Titans Attract Interest
AT&T, Inc. (NYSE:T): Today, the company stated that it is offering its faster 4G LTE network to five more cities, as it also expanded coverage in a few of the major cities. Green Bay, Wisconsin; Springfield, Massachusetts ; Tucson, Arizona.; Melbourne, Florida; and Oxford, Mississippi are the most recent additions to AT&T’s LTE network. This totals 125 cities.
Sprint Nextel Corp. (NYSE:S) announced that more customers in the metropolitan Chicago area should be able to obtain high-speed 4G LTE service, which increases speeds for uploading photos, surfing the Web, and streaming videos. Sprint still indicates significant progress in the buildout of its all-new 4G LTE network, as it keeps reaching new customers.
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Verizon Communications Inc. (NYSE:VZ): Avail-TVN claims to have struck deals for the supply of subscription video-on-demand programming to Verizon’s FiOS TV and Redbox Instant, which is the streaming video service that Verizon and Coinstar have intentions to launch next year. Verizon has launched Avail-TVN’s ViewNow service, which is able to deliver video in multiple formats, in October, according to a statement by Avail-TVN on Monday. The company launched ViewNow “as part of an agreement that includes multiscreen rights in the future,” it added.
Vodafone Group plc (NASDAQ:VOD) still faces pressure due to concerns regarding the cost of bidding for the next generation of mobile spectrum, along with a declining earnings forecasts. The auction of 4G licences in the Netherlands at last week’s conclusion saw mobile companies pay €3.8 billions, which excceded expectations and caused discussions that costs elsewhere may see a rise. According to analyst Justin Funnell at Credit Suisse, he doubted that other European auctions would be able to reach the Dutch levels. However, he has raised his forecast for Vodafone’s spectrum payments between 2013 and 2016 from £8 billion to £9.25 billion.
Clearwire Corporation (NASDAQ:CLWR): In an 8-K filing, Sprint (NYSE:S) has claimed that under the merger agreement, Clearwire is subject to a “no-shop” restriction on its ability to solicit offers or proposals concerning an acquisition proposal or providing information to or engaging in discussions or negotiations with third parties about a possible acquisition proposal, subject to certain exceptions. Additionally, the agreement claims that the company should pay to Clearwire a termination fee of $120 million either upon a SoftBank Termination or if the SoftBank Transaction is not consummated and certain other conditions are met, upon termination by either the Company or Clearwire of the Merger Agreement due to the fact that the Merger was not consummated on or before October 15, 2013, as such date may be extended in accordance with the terms of the Merger Agreement
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