Sprint spins off WIMAX unit into new Clearwire
07 May 2008
Sprint spins off WIMAX unit into new Clearwire
Most of the rumour mongers were proved right on Wednesday, as WiMAX pin up Sprint spun off its wireless broadband operation into a partnership with Clearwire, Intel, Google and a number of cable players.
This reconciliation with Sprint's on-again, off-again partner, will see Craig McCaw's company make off with more than a quarter of the new WiMAX firm, to be known as the new Clearwire, as well as the Xohm brand.
Meanwhile, Intel, Google, Comcast, Time Warner Cable and Bright House Networks will invest a total of $3.2bn and take another 22 per cent chunk in the company. Sprint will hold onto the remaining 51 per cent.
For their individual parts, Intel will work with gadget makers to embed WiMAX chips into Centrino 2 laptops and other Intel-based mobile internet devices (MIDs), and will market Clearwire's service in association with its notebook PC brand.
Google will participate in the development of internet services, advertising services and applications for mobile WiMAX devices, as well as enjoying the position of nominated search provider and preferred provider of other applications. Google's Android operating system will also get a look in on future voice and data devices for the service.
Sprint, Comcast, Time Warner and Bright House will forge wholesale agreements with the new Clearwire for the retail sale of mobile WiMAX services and all the operators will also enter into 3G wholesale agreements with Sprint.
Interestingly, Google and Intel also have the options to enter into 3G and 4G wholesale agreements with Clearwire and Sprint respectively, potentially paving the way for Google to become an internet service provider.
Google also cleans up with Sprint, becoming the default provider of web and local search services, as well as getting several of its applications preloaded on Sprint mobile phones.
The transaction is expected to be completed during the fourth quarter. The new Clearwire is targeting a WiMAX network deployment that will cover between 120 million and 140 million people in the US by the end of 2010.
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