Sprint, Clearwire Partner To Create WiMAX Company

Sprint Nextel and Clearwire have announced plans to combine their wireless broadband units under the Clearwire name, forming a new wireless division with an estimated worth slightly under $15 billion dollars.

The new company will have a stated goal of deploying WiMAX service to cover 120 to 140 million people in the U.S. by 2010.

Joint Operation Under Sprint Leadership

Sprint Nextel will remain the controlling partner in the new venture, with 51% of the equity, effectively merging the old Clearwire with a spun off version of Sprint's mobile broadband division.

Shareholders of the former Clearwire will receive 27% of the company's stock, while an investment group consisting of Intel, Google, Comcast, Time Warner, and Bright House will contribute $3.2 billion in exchange for the remaining 22% of the company.

The new Clearwire will have a total market value of approximately $14.55 billion dollars.

About Clearwire

The existing Clearwire already offers wireless Internet using pre-WiMAX technology in 55 cities in the US, with a customer base of approximately 400,000, as well as offering service in parts of Europe.

Sprint and Clearwire had previously announced a partnership to speed WiMAX deployment in 2007, but terminated the deal later that year citing "complications" to the companies' business plans.

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