Sprint Eyes Spinning Off WiMAX Service

Company considers split; investors to share cost of network
By Jim O'Neill,  Newser User
Posted Dec 4, 2007 2:43 PM CST
Gary Forsee, ex-CEO of Sprint Nextel Corp., was ousted recently in part because Sprint's board was unhappy with his focus on WiMAX.   (Associated Press)
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(Newser) – Weeks after a planned partnership to build and operate a next-generation WiMAX network with Clearwire fell through, Sprint Nextel is looking for investors and is considering a spinoff of its nascent high-speed wireless operation, reports Reuters. Acting CEO Paul Saleh yesterday said the company was considering options for a WiMAX unit that could take “various forms.”

Sprint planned to spend $5 billion with Clearwire on a nationwide network to deliver fast mobile web service. Experts said Sprint, the third-largest cell carrier in the US, was wise to consider a spinoff. “There have always been concerns they were jumping into this headlong,” said one. Sprint plans to offer WiMAX service in Chicago and Washington, DC, this year.