Sprint Nextel, Cleawire Ressurect WiMAX Partnership, Create New Mobile Broadband Company

(Top News, 8 May 2008)

By Stephen Las Marias, Editor


About six months after they scrap their plans to jointly build a nationwide WiMAX-based network, Clearwire Corp. and Sprint Nextel Corp. are now at it again. The two companies, aided by a total of $3.2 billion combined investment from Intel Corp., Google Inc., Comcast Corp., Time Warner Cable Inc., and Bright House Networks, have resurrected their plans to build a new wireless communications company, which will be named Clearwire.

The new company will focus on expediting the deployment of the first nationwide mobile WiMAX network to provide a true mobile broadband experience for consumers, small businesses, medium and large enterprises, public safety organizations and educational institutions.

The strategic investors are among the leaders in communications technology, chipset development and Internet advertising, content and distribution. It is expected that the new Clearwire will have a time-to-market advantage over competitors in 4G services, supported by strong spectrum holdings and a national footprint. In addition, the new company will build on Clearwire's rapidly growing subscriber base of nearly 400,000 wireless broadband customers, as well as Sprint's continued XOHM WiMAX network build-out in certain markets throughout this year.

The transaction has been approved by all of the parties' boards of directors, and is expected to be completed during the fourth quarter of 2008, pending various closing conditions including the approval of Clearwire's stockholders, and receipt of regulatory approvals.

Sprint will own the largest stake in the new company upon completion of the transaction, with about 51 percent ownership. The existing Clearwire shareholders will own approximately 27 percent and the new strategic investors, as a group, will be acquiring approximately 22 percent.

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