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Sprint and Clearwire may reunite for WiMax

5:56 AM Wed, Jan 30, 2008 | Permalink
Andrew Smith

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The Wall Street Journal, citing unnamed sources, says that Sprint Nextel and Clearwire have resumed negotiations to partner on a high-speed wireless data network, one that would bring a DSL-speed connection to customers anywhere.

The plan could dramatically lower the price tag of Sprint's WiMax project and allow newly installed Chief Executive Officer Dan Hesse to focus on fixing the company's core cellphone business -- answering two concerns Sprint investors have had.

There's no guarantee the joint venture will materialize, or that Sprint and Clearwire will secure external funding, despite the advanced discussions. Last year Sprint and Clearwire tentatively agreed to a more modest cost-sharing partnership on WiMax, but the deal was scrapped in November, partly because Sprint was operating without a CEO at the time and was reluctant to make any major moves. Since then, the two sides have re-engaged on a more ambitious plan that would involve spinning off Sprint's WiMax unit and merging it with Clearwire, people familiar with the matter say.

Given that WiMax would seem to be Sprint's only chance for overtaking archrivals such as AT&T or Verizon Wireless, I can't see why Sprint would spin-off WiMax operations to focus on a declining business.

That said, this sounds like good news for folks like me who want fast Internet connections everywhere.

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Sprint and Clearwire may reunite for WiMax

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