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Sprint Nextel May be Considering Clearwire WiMAX Merger

Date: 11/7/2007 3:13:47 PM

American cell phone carrier, Sprint Nextel Corp., is considering restructuring its wireless broadband division through a merger with its WiMAX partner, Clearwire, according to a recent report in the Wall Street Journal.

Sprint and Clearwire agreed this summer to share WiMAX networks once the technology is commercialized, and had been expected to reach a formal partnership by midSeptember. The two companies are still “in discussions,” however, according to Sprint’s acting CEO, Paul Saleh.

The Wall Street Journal reported that Sprint is considering numerous options, including spinning off its WiMAX unit and merging it with Clearwire to create a new public entity. Other possibilities include attracting a new strategic investor, acquiring Clearwire, or finalizing the original networksharing agreement.

Sprint has been losing highvalue postpaid cell phone subscribers for the past several months, and has been criticized by analysts and shareholders for its plan to invest $5 billion in the largely unproven WiMAX market over the next three years.  Phone Card News Stats


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