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Thursday, April 26, 2012

Towerstream $TWER Carrier Deal is with....

Towerstream $TWER

I had previously written that I thought Sprint was the carrier that signed a contract with Towerstream. My logic was that Towerstream's network was built largely with Dragonwave product.  Clearwire's network is largely built with the same products. My thoughts were that it would be easy to integrate a backhaul deal with Clearwire and thus Sprint would be the carrier that has contracted with Towerstream.
Today, Clearwire mentions that have "identified" (as opposed to build) 5000 nodes as a backhaul offload network in 31 markets to start in NY, Chicago, San Francisco, LA, and Seattle.
This confirms my thoughts, except perhaps Towerstream will have a deal with Spint through Clearwire as opposed to directly with Sprint. One thing that might be a bit different is Towerstream only mentioned San Francisco and NY on the conference  calls as the two markets where a backhaul offload strategy would be deployed.  So this is a possibly very good news and we will more than likely hear on May 10 the number of nodes used in the offload strategy climb.  In effect, Each additional node adds $142k to market cap based on the buyout of NextG.
More on valuations later..
PS please click a commercial.

Thanks!!
jWells

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