Sprint and Clearwire pool WiMax resources

SPRINT NEXTEL AND CLEARWIRE have confrimed they will be pooling their wireless broadband units into a whopping $14.55 billion communications company.

The new firm, which will take the name Clearwire, will boast investors like Comcast and Intel (coughing up $1 billion each); Time Warner, which is putting up $550 million; search engine giant Google, with $500 million; and cable provider Bright House Networks, splashing out $100 million. Venture Capital firm Trilogy Equity Partners is also putting $10 million into the venture.

Sprint Nextel will retain majority ownership, however, with a 51 per cent equity stake.

The deal is a risky one, as WiMax has so far not proved particularly lucrative. Both Sprint and Clearwire have already invested billions in the technology without seeing much return. WiMax is also up against competing LTE technology, which, despite still being in the development phase, could mean further difficulties for the already flailing WiMax.

The potential deal is good news for Google, as it would give the company more wireless broadband alternatives and influence over a wireless network, much needed for their mobile applications and of course advertising.

It is also good for Time Warner, Comcast and Bright House, who as cable companies are always looking for new ways to compete with the mobile operators who have slowly but surely been stealing their business.

The deal is expected to go through at some point in the fourth quarter of 2008. µ