Sprint, Clearwire Get FCC Approval to Create WiMAX Company

Earlier this year, Sprint Nextel and Clearwire announced plans to combine their wireless broadband units under the Clearwire name, forming a new wireless division with a stated goal of deploying WiMAX service to cover 120 to 140 million people in the U.S. by 2010.

This week, the FCC gave its unanimous approval to this deal because it will increase American's options in broadband access.

Clearwire will hold a shareholders meeting on Nov. 20 to vote on this deal. If it is approved, the new Clearwire will be created shortly thereafter.

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.

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