Clearwire and Sprint breathe new life into WiMAX project

by Stevie Smith - May 8 2008, 11:09

Picking up the pieces of what was thought to be a collapsed telecommunications partnership, Sprint Nextel Corp. and Clearwire Corp. have this week announced revitalised plans to deliver a new high-speed mobile Internet service based on superior wireless WiMAX technology.

By pooling their wireless broadband units alongside substantial third-party financial support, the two communication companies are to launch ‘Clearwire,’ a new $14.55 billion USD venture that will focus on the creation of a WiMAX mobile network.

“The agreement enables us to get to market faster and reach a broader audience than we could have if we went alone,” explained Sprint Nextel CEO Dan Hesse to analysts during a conference call yesterday.

The resurrected WiMAX-development partnership comes about despite a similar deal between Kansas-based Sprint Nextel and Washington-based Clearwire having fallen through in November of 2007.

Unlike that particular effort, the newly announced ‘Clearwire’ company is bolstered substantially by outside investment from the likes of leading chipmaker Intel Corp. and search giant Google Inc. along with Comcast, Warner Cable, and Bright House Networks, which have combined to inject the venture with some $3.2 billion USD.

Equity in the communications company will see Sprint Nextel securing majority ownership with 51 percent, while Clearwire Corp. will take a 27 percent stake and the combined investment group will hold the remaining 22 percent.

The Clearwire mission statement suggests that it expects to have its wireless broadband WiMAX mobile network open to between 120 and 140 million users across the United States by the close of 2010.

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