Sprint-Clearwire Deal Expected to Close in Q4

The wireless broadband Internet service provider Clearwire (CLWR), according to Unstrung, expects the closing of the deal with Sprint Nextel Corp. (S)’s WiMax assets to be finalized by the end of the year.

In a deal announced in early May, Sprint and ClearWire had plans of merging WiMAX operations by forming a new joint venture. The deal has financial support starting with over $1 billion from the largest cable television company Comcast, another billion from chip maker Intel, $650 million from Time Warner Cable and its subsidiaries, and $500 million from Internet giant Google. Totaling $3.2 billion of outside investments, plus whatever cash Clearwire and Sprint combined might bring to the table.

There are, however, strong objections to the deal from AT&T (T). The largest provider of telephone services wants the merger blocked and has asked the U.S Federal Communications Commission to deny it on the basis of a Sprint-Clearwire application being “fatally defective.”

But the Kirkland, WA-based operator disagrees. In an email to Unstrung the company said: “Clearwire continues to believe that the approval process is on track to permit closing before the end of the year. The co. is fully confident that the Sprint transaction is in the public interest, as it will increase competition, stimulate innovation and provide the first nationwide ‘true broadband’ network.”

Clearwire expects to go commercial with its first Portland, Ore., mobile WiMax deployment in the fourth quarter. This network could be followed by Atlanta, Grand Rapids, and Las Vegas. In addition, a September launch of a WiMax mobile wireless network in Baltimore is still expected.

Sprint owns spectrum licenses for the WiMax band covering more than 180 million U.S. residents while Clearwire has spectrum in the same band to serve 115 million people.

Regardless of Clearwire’s optimism, the fact is that the future of a national WiMax network remains still in question. $3.2 billion raised from Sprint/Clearwire proposed joint venture may not be enough, given what an entire network would require.

Comments

[Nextel Acce...:]

If this isn't real, why would AT&T be concerned???

2008 Aug 19 01:29 PM

[Dan Jones:]

AT&T is concerned because spectrum is a very real -- and limited -- commodity.

DJ

2008 Aug 19 05:41 PM

[Geddy:]

AT&T (as well as Verizon Wireless) just purchased huge chunks of 700mhz spectrum...they're not worried. I believe they're disputing this "merger" just for the fact Clearwire/Sprint have a monopoly on 2.5Ghz that apparently doesn't have to follow the normal FCC rules for amount of spectrum in a market which they'll have to contend with soon themselves.

2008 Aug 19 08:26 PM

[ReasonableD...:]

And ATT is not a freakin' monopoly resurrected????? Only an ATT rank and file peon would think not. If ATT is so great and unstopable and Sprint sucks so bad as you drone on and on and on in every other post you make, then why do you care if CLWR plus S has a competitive edge with 2.5ghz spectrum? I've read your other posts by the way and you are sadly misinformed on the market readiness of both WiMAX and LTE. Have a great day!

2008 Aug 19 10:50 PM

[Geddy:]

If you've read my other posts you would also have seen I work for MetroPCS so get your stories straight before posting nonsense. I only made an observation actually backing up what you said...about AT&T only complaining because they have the same fight coming up about having too much spectrum. I actually can't stand AT&T either...but they're definitely (& quite obviously due to the sheer volume of customer defections from Sprint) better than Sprint. I'd also love to hear your opinions against my observations on market readiness of WiMax & LTE...post at will!

2008 Aug 20 07:14 PM

[Geddy:]

And they've already lost their CFO before launching...poor "New" Clearwire! WAY too funny!

2008 Sep 20 10:38 AM

[kdinvff:]

you are also funny because you are so pathetic


On Sep 20 10:38 AM Geddy wrote:

> And they've already lost their CFO before launching...poor "New"
> Clearwire! WAY too funny!

2008 Sep 23 01:30 AM

[dcc2013:]

Geddy: I 've seen your postings on other blogs -- what's the basis for your obsessive anti-clearwire comments?

2008 Sep 24 10:54 AM

[Geddy:]

I work for a competitor so it's all in jest.

2008 Sep 24 09:32 PM

[Geddy:]

But they really are terrible. Just do a bit of research & you'll see the customer complaints all over the place. Yes I know, everyone has upset customers...but nothing to the extent I've seen with Clearwire. They even have their own website dedicated by disgruntled customers; haven't seen that for other carriers (clearwiresucks.com).

2008 Sep 28 11:08 AM