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« Sprint Nextel May Spin Off WiMax Division...or Not | Main | McCaw Profile, Future of WiMax in the Wall Street Journal »

November 8, 2007

Sprint, Clearwire Abandon Complementary WiMax for Now

By Glenn Fleishman

The Wall Street Journal reports the deal for a joint mobile WiMax network is off between Sprint Nextel, Clearwire: That doesn’t mean either company is abandoning plans, nor that the two won’t forge a new deal. But with the departure of Sprint’s head due to a lack of confidence in his initiatives, it’s hard to see how an interim CEO could sign off on something that might last for years or even decades.

The deal between the two firms was for them to use complementary spectrum holdings and carry out spectrum swaps to create nonoverlapping network buildouts that would cover the whole country. Sprint would also allow Clearwire to resell its 3G EVDO network, a critical stage in building a roaming business audience. The complementary buildout would prevent double building, and provide the full set of frequencies in each market needed to ensure the highest data rates.

The Journal reports that some of Clearwire’s partners—Intel, Motorola, and Samsung—might “try to inject financing into Clearwire” to keep the WiMax network buildout on track. Intel and Motorola previously put in hundreds of millions.

Posted by Glennf at November 8, 2007 8:28 PM

Categories: 2.5 GHz, competitive landscape, deals, financial, launch plans, mainstream press

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