American mobile phone carrier, Sprint Nextel, has scrapped plans to partner
with wireless broadband startup, Clearwire, on a nationwide WiMAX network.
The partnership was reversed after Sprint decided to dismiss its CEO, Gary
Forsee, last month. The collapse of this partnership is being seen as a major
blow to Clearwire, whose stock price dropped more than 25% yesterday, to close
at $13.49 on the NASDAQ.
Clearwire’s losses have swelled significantly for the past three years, and its
thirdquarter sales totaled just $41.3 million, or less than one hundredth of
“The Sprint deal was really good for Clearwire, and it’s bad that they lost
that,” commented Jefferies & Co. analyst, Jonathan Schildkraut. “Clearwire will
have to shoulder a bigger burden to get broader network coverage.”