Sprint Nextel Spells Out WiMax Targets

Number-3 U.S. wireless carrier Sprint Nextel said Thursday it will spend up to $5 billion through 2010 on its WiMax high-speed wireless network. The company forecasts it will derive $5 billion in revenue from the network -- to be branded "Xohm" -- by 2011. Sprint also said its WiMax expenditures through 2008 will be lower than expected because of its agreement to connect the network with provider Clearwire Corp. Sprint is betting that consumers will want fast wireless Internet access not only for their phones but also for their videogame players, cameras and other electronics. "I find it hard to believe customers will be willing to pay for a broadband connection to their digital camera or their DVD player," said Surterre Research analyst Todd Rethemeier. Competitors AT&T, Verizon and Vodafone have not yet committed to WiMax, but Sprint sees it as an advantage to be first in the field. "WiMAX has the ability to transform the marketplace," said Sprint CFO Paul Saleh. It is less expensive and supplies more customers than Verizon's FiOS fiber project or AT&T's U-Verse Internet TV service, he said.

Sources: Press release, Wall Street Journal, Reuters
Commentary: Clearwire, Sprint Near WiMax Deal -- WSJ • Sprint Nextel Seeks Help With WiMax -- WSJ • Sprint Nextel's Downward Spiral Continues
Stocks/ETFs to watch: S, CLWR. Competitors: T, VZ, VOD. ETFs: WMH, TTH, VOX
Earnings call transcripts: Sprint Nextel Q2 2007

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