Sprint Completes Deal with Clearwire to Launch 4G Mobile Internet Company

December 5, 2008

By Mike Peters Sprint has announced the completion of a deal with Clearwire to launch a new company that will combine the next-generation wireless Internet businesses of both companies to create the first nationwide 4G mobile broadband network.

Clearwire to Offer Open all-IP Network with Mobile WiMAX Technology

Clearwire's open all-IP network utilizes mobile WiMAX technology, providing customers with average download speeds of 2 to 4 mbps and peak rates that are considerably faster. However, the company noted that its spectrum holdings are what provide Clearwire with real differentiation in that it enables the company to provide true, mobile broadband services. In the deal, Sprint contributed its entire 2.5 GHz spectrum holdings to Clearwire. With this combined spectrum portfolio, Clearwire now has 100 MHz or more of optimal 4G spectrum in most markets across the U.S.

Clearwire received a $3.2 billion investment from several largest communications, entertainment, and technology companies in the world, including Comcast, Intel through Intel Capital, Time Warner Cable, Google, and Bright House Networks, and will receive an additional investment from Trilogy Equity Partners in the coming months.

Sprint Nextel and Clearwire Bring New Mobile Internet Speeds

"As we roll out our network across the country, people will no longer have to make the choice between speed and mobility. We are bringing a new mobile Internet experience to customers at speeds previously relegated to fixed locations," said Benjamin G. Wolff, chief executive officer of Clearwire. "With significant spectrum holdings yielding unmatched network capacity, a next-generation all-IP network, and an open Internet business model, Clearwire will deliver a simple value proposition aimed to improve productivity and make the Internet experience more enjoyable, wherever our customers happen to be."

"With the global economic challenges ahead for consumers and businesses next year, we believe it's important to invest in those infrastructure improvements that can propel the U.S. forward and stimulate innovation," continued Wolff. "Today is just the beginning. Over the coming years, as Clearwire rolls out ultra high-speed mobile Internet services across the country, we expect to be well positioned to transform the communications landscape."