Tech Companies Team Up on WiMAX

May 12, 2008

Sprint Nextel and Clearwire Corporation are teaming up with strategic investors Intel, Google, Comcast, Time Warner Cable, and Bright House Networks to create a tech company which will offer the first nationwide mobile WiMAX network. The new company, called Clearwire, is expected to dramatically enhance the speed and methods by which customers access the Internet.

$3.2 Billion Investment in WiMAX Planned

The tech companies have agreed to invest $3.2 billion in the new company. Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51 percent equity ownership. Clearwire shareholders will own approximately 27 percent, and the new strategic investors, as a group, will acquire approximately 22 percent.

Mobile Wireless Internet Services Will Be Available on Many Devises

Clearwire expects to offer mobile wireless Internet services on an array of new devices that will be made possible by integrated WiMAX chipsets, scalable operating expenses, and a commitment to an open architecture.

Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today's 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices, and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multimedia applications, such as live videoconferencing, recorded video, games, and large data files -- anywhere in the network coverage area.

Statement from Sprint CEO

"For Sprint shareholders, this is an opportunity to unlock and bring visibility to the value of our significant spectrum assets, technology and expertise, by leveraging the technology, applications and distribution strengths of our investors, who together command nearly a half- trillion dollars in market capitalization," said Dan Hesse, president and chief executive officer of Sprint. "We've made an excellent start developing XOHM WiMAX services. Contributing those advances to a strongly backed new company - in which we'll hold the largest interest - provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business.”

"Additionally, the agreements allowing the new company and our cable company investors to bundle and resell Sprint's third-generation wireless services strengthen the distribution of our current services while reducing the complexity and enhancing Sprint's cable relationships," Hesse added.

Clearwire Chairman Speaks of Power of Mobile Internet

Clearwire Chairman Craig O. McCaw, said, "The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country. We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the U.S. to a leadership position in the global wireless industry.