Clearwire, Sprint Near WiMax Deal -- WSJ

Sprint Nextel and Clearwire are near an agreement to provide seamless roaming service to each other's customers as they deploy broadband networks with WiMax technology, the Wall Street Journal reported Thursday. WiMax gives users the capability to access the Internet at high speed via cellphones, laptops and other devices. It is designed to be as fast as cable broadband and much faster than the cellular Internet access service provided by Verizon Wireless and AT&T. This would be the first time WiMax has been made available on a wide scale, and some Sprint investors are reportedly apprehensive about Sprint's plans for a $3 billion nationwide rollout. If the agreement is finalized, the two companies will be able to access one another's spectrum resources outside their current networks. According to the report, Sprint is also sounding out cable operators and private equity firms about investment in its WiMax unit. The pact would follow a deal recently inked by Clearwire with satellite providers DirecTV and Echostar that will allow it to bundle its high-speed wireless Web access with their programming.

Sources: Wall Street Journal, Trading Markets, Seattle P.I.
Commentary: Clearwire Soars 23% on WiMax Deals with DirecTV, EchoStar • Sprint Nextel Seeks Help With WiMax -- WSJ • Clearwire Service Expanding Quickly; Solid Sub Growth Should Follow
Stocks/ETFs to watch: Clearwire Corp. (CLWR), Sprint Nextel Corp. (S). Competitors: AT&T Inc. (T), Qwest Communications International Inc. (Q). ETFs: Wireless HOLDRs (WMH), Telecom HOLDRs (TTH), Vanguard Telecom Services ETF (VOX)
Earnings call transcripts: Sprint Nextel Q1 2007

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