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Sprint weighs partnership for Clearwire funding
01 September 2010
Sprint’s board is said to be considering allowing Deutsche Telekom’s T-Mobile USA to invest in WiMax operator Clearwire
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Sprint
Clearwire
T-Mobile
WiMax
LTE
Verizon
Deutsche Telekom
The board of directors of Sprint Nextel is said to be discussing whether to allow rival operator, T-Mobile USA, to invest in Clearwire, according to US reports. Sprint has partnered with Clearwire to build 4G network to offer speedy data services to mobile devices. Sprint’s position as a founder of Clearwire — and the biggest shareholder in it — enables it to block other companies from becoming strategic investors.
Clearwire, however, needs billions of dollars to finish building its nationwide WiMax network, in advance of 4G competition from Verizon Wireless, which is planning to launch an LTE service.
Sprint, which owns 54% of Clearwire, has to decide whether to fund the project itself or turn to a competitor for help. It could buy shares from other Clearwire investors that include Comcast, Intel, Google and Time Warner Cable.
Deutsche Telekom subsidiary T-Mobile USA, which does not have a 4G strategy of its own, faces the choice of upgrading its own wireless network or partnering with another 4G provider, such as Clearwire. The company is yet to tender a proposal to Clearwire. GTB