UPDATE 1-Clearwire outlines growth for new Sprint venture
(Adds details, share move)
NEW YORK, June 12 (Reuters) - Clearwire Corp (CLWR.O) on Thursday outlined a long-term view of growth for a new high-speed wireless venture with Sprint Nextel Corp (S.N), forecasting revenue of over $17.5 billion by 2017.
Sprint and top U.S. cable companies are investing in a venture with Clearwire to build a network based on WiMAX, an emerging high-speed wireless Internet technology. The deal to create the venture is expected to close at the end of 2008.
In a slide presentation to investors, Clearwire said it expected the venture to reach 30.8 million subscriber accounts and offer coverage to as many as 220 million people by 2017.
It also projected average revenue per user account of $60 to $65 and free cash flow of $3.8 billion in that time frame. Free cash flow refers to earnings, excluding amortization and depreciation, but including capital expenditures.
In the nearer term, Clearwire expects to offer coverage to 60 million to 80 million people in 2009.
The new Clearwire is a $14.5 billion venture with Sprint, Comcast Corp (CMCSA.O), Time Warner Cable Inc (TWC.N) , Intel Corp (INTC.O), Google Inc (GOOG.O) and Bright House Networks.
WiMAX promises to blanket entire cities with Web access for laptops, cell phones and other consumer devices at fast speeds.
Clearwire shares fell 6 cents, or 0.5 percent, to $13.39. Sprint rose 5 cents to $8.50. (Reporting by Michele Gershberg, editing by Gerald E. McCormick and Derek Caney)
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