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Sprint, Clearwire Network Deal Shelved

Collapsed deal heavy blow to Clearwire

By Jane Yager,  Newser Staff

Posted Nov 9, 2007 8:10 AM CST
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(Newser) – An ambitious agreement between Sprint Nextel and Clearwire to built a nationwide WiMax wireless network, reaching 100 million people by late next year, is on the rocks, insiders tell the Wall Street Journal. The transaction apparently collapsed under the weight of its complexities, aggravated by Clearwire's larger-than-expected third-quarter losses and the recent departure of Sprint's CEO.

Clearwire has pinned its future on WiMax, a technology that allows, for example, web surfing from a moving vehicle. Sprint planned to spend about $5 billion on the network through 2010 and says it hasn't entirely scrapped its plans. One of the other companies backing WiMax, which include Intel, Motorola, and Samsung, may inject financing into Clearwire to save the network.

In a file photo passers-by walk past a Sprint Store in Boston, Wednesday, Dec. 15, 2004 . SKprint Nextel Corp. sent letters to about 1,000 subscribers June 29, saying the company's records showed they had made frequent calls for help with questions about billing and other account information. The customers...
In a file photo passers-by walk past a Sprint Store in Boston, Wednesday, Dec. 15, 2004 . SKprint Nextel Corp. sent letters to about 1,000 subscribers June 29, saying the company's records showed they...   (Associated Press)
In a file photo passers-by walk past a Sprint Store in Boston, Wednesday, Dec. 15, 2004 . Sprint Nextel Corp. sent letters to about 1,000 subscribers June 29, saying the company's records showed they had made frequent calls for help with questions about billing and other account information. The customers...
In a file photo passers-by walk past a Sprint Store in Boston, Wednesday, Dec. 15, 2004 . Sprint Nextel Corp. sent letters to about 1,000 subscribers June 29, saying the company's records showed they...   (Associated Press)
A Sprint phone store sign is enveloped by sunlight and shadows in this Feb. 28, 2007 file photo, in Murray, Utah. Sprint Nextel Corp., the nation's third-largest wireless carrier, said Wednesday, May 2, 2007 it swung to a first-quarter loss as bigger investments in operations wiped out modest gains in...
A Sprint phone store sign is enveloped by sunlight and shadows in this Feb. 28, 2007 file photo, in Murray, Utah. Sprint Nextel Corp., the nation's third-largest wireless carrier, said Wednesday, May...   (Associated Press)
Various models of phones are displayed on a computer screen as a customer is helped at a Sprint store in this Feb. 28, 2007 file photo, in Murray, Utah. Wireless provider Sprint Nextel Corp. on Wednesday, Aug. 8, 2007 said second-quarter profits dropped sharply on takeover costs and expenses tied...
Various models of phones are displayed on a computer screen as a customer is helped at a Sprint store in this Feb. 28, 2007 file photo, in Murray, Utah. Wireless provider Sprint Nextel Corp. on Wednesday,...   (Associated Press)
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Sprint and Clearwire call it quits on WiMax
Wired

Sprint and Clearwire scrap WiMax pact
Reuters

 
Intel • Motorola • Samsung • Sprint Nextel • Sprint • WiMax • Clearwire

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