In a major bet on WiMax wireless Internet, Sprint Nextel and Clearwire said today they would combine their networks in a new company with investment from Google, Intel and others.

The new company, which will retain Clearwire's name, will deploy a nationwide WiMax network, which promises faster speeds than the latest cellular networks for movies, games and other data services.

WiMax promises to blanket entire cities with Web access for laptops, cell phones and other wireless devices at fast speeds. It uses a licensed channel of radio spectrum and can transmit, according to its backers, to an area as much as 50 kilometers (30 miles) with a stronger signal than Wi-Fi and access faster than most current devices. It aims to have a service area covering as many as 140 million people in the United States by the end of 2010.

Sprint, which would otherwise have had to invest $5 billion on a solo WiMax network, will now inject WiMax assets valued at $7.4 billion into the venture, giving it 51 percent ownership.

"The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country," said Clearwire chairman Craig McCaw, who would become non-executive chairman of the firm to be based in Washington state.

"We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the US to a leadership position in the global wireless industry."

Rivals such as AT&T and Verizon Wireless have eschewed WiMax, opting instead for upgrades to their current wireless broadband networks and a future technology called Long Term Evolution. WiMax is available now and should give the new company a two-year head start in the so-called "fourth-generation," or 4G, telecommunications market.

Clearwire will sell WiMax services back to Sprint and the cable partners, through a "mobile virtual network operator," or MVNO, business model. There are no plans, however, to offer similar access to service providers not part of the joint venture.

The new Clearwire will cover a region with between 120 million and 140 million people in the US by the end of 2010. Upon completion of the deal, Sprint will own the largest stake in the new company with some 51 percent equity ownership. Clearwire shareholders will own around 27 percent and the new investors, as a group, will be acquiring an estimated 22 percent.

The deal, which has been approved by the boards of all companies involved, must be approved by Clearwire shareholders and regulatory agencies, but is expected to close during the fourth quarter. The company will apply for a Nasdaq listing under the ticker "CLWR" - the current symbol for Clearwire.

1. Posted by iowa	Wed May 07, 2008 11:49 pm
Wow. way to go sprint! looks like wimax may be a reality after all.
2. Posted by Rybold	Thu May 08, 2008 3:42 am
I don't know how well this is going to catch on. I graduated from college a year ago, and everyone on campus is used to using FREE WiFi. I currently live in an upscale apartment building, and everyone is used to using FREE WiFi. Today's generation of college students (currently 6 years worth, fresh, soph, juniors, seniors, grad students), plus those who graduated in the past few years are all accustomed to FREE WiFi internet access. When I go to the local coffee shop, at any time of the day, at least 30+ people of all ages are accessing FREE WiFi. Aside from realtors, corporate users, and hollywood actors who don't know what to do with their money, WHO IS ACTUALLY GOING TO PAY A MONTHLY FEE FOR THIS ? Lol. Most people I know don't surf the internet and drive their cars at the same time. Either we are at home, at the office, or at a coffee shop. I predict WiFi will continue to be the FREE consumers' choice for years to come!
3. Posted by Rybold	Thu May 08, 2008 3:45 am
Oh, and if one person in my apartment building subscribes to WiMax, I'm sure they'll figure out how to plug a WiFi router into their laptop to broadcast it to the rest of the apartment building anyway. WiFi is here to stay!
4. Posted by McGirk	Thu May 08, 2008 8:57 am
Maybe, but I don't feel like being chained to a coffee shop, and WiMax could replace the current system we use and will be a strong choice for those of us who don't have the option of cable or dsl for home choices. Not only that, but where I am at, there are precious few wifi spots, while there are a lot of EVDO Rev A spots. So yeah, I am used to paying for what I get, and that neither makes me stupid, nor does it mean I have more money then I know what to do with.
5. Posted by iowa	Thu May 08, 2008 11:25 am
Plus WiFi Is targeted not only for it's superior mobility, but the fact it may be the replacement for dsl or cable modems. you wifi people are failing to see the big picture. i wouldn't broadcast an open wifi signal at home. too many security issues. and it's only a matter of time before other people realize the same, and start locking down thier wifi connections. and if wimax does replace dsl where do you think your internet wifi is coming from? wimax. i know i'll be ordering a wimax card because i love mobility and the ability to take my bandwidth wherever i go. and i don't have to depend on anyone but myself. it just sounds like your too cheap to pay for internet.And let's be real about this, 95 percent of homes or apartments do not come with wifi. so before you blast something, be sure to understand the economics of things.
6. Posted by Shalalala	Fri May 09, 2008 11:33 am
This will not matter once Tmobile buys Sprint.as they are currently in preliminary talks in doing so!
7. Posted by McGirk	Sat May 10, 2008 8:53 am
They can talk all they want, it's unlikely that the Trade Commission will let the Number 3 and 4 company merge. Not to mention the logistical nightmare of combining large companies with differing signal styles, the nightmare that Sprint is already going through and should teach anyone else that it is a bad idea. Not only that, but Sprints native network doesn't cover all that much different then TMobile's, so in essence, rather then increasing their network size, they would be renting customers until their contracts were up. Sprint is cheap right now, but it really is not the right fit for another major company.
8. Posted by iowa	Sun May 11, 2008 4:15 am
This will not matter once Tmobile buys Sprint.as they are currently in preliminary talks in doing so! There are no talks of t mobile buying sprint. that is just another rumor started by inaccurate websites like engadget.

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