Clearwire has entered into an agreement with Simplexity MVNO Services in which Simplexity will become a reseller of Clearwire’s mobile broadband service. The deployment of the service is to begin later this year.
The move isn’t helping Clearwire’s slumping stock price, with the Kirkland broadband wireless company losing more than five percent of its value today.
“The reach and unparalleled scalability of Clearwire’s 4G mobile broadband network offers a very competitive platform to carriers and businesses across a wide range of industries seeking to grow rapidly in an increasingly mobile-centric world,” said Don Stroberg, president of strategic partnerships and wholesale at Clearwire, in a statement. “Simplexity’s ability to offer MVNE services adds a new level of choice and flexibility that will make it even easier for potential wholesale partners seeking a simple back office solution to support their 4G product offerings.”
Wireless Week reports that the deal comes amid growing pressure on Clearwire’s wholesale business, which drives most of the company’s revenue. Wholesale customers such as Time Warner and Comcast have said that they plan to end their agreements with Clearwire, switching instead to the technology known as LTE.
Clearwire, meanwhile, is pushing deeper into LTE and last month raised up to $1.6 billion from partner Sprint in order to assist with the roll out.