New $14.5 billion WiMax wireless operator-- 07/05/2008

Sprint Nextel, Clearwire, Google, Comcast, Intel to create new $14.5 billion WiMax broadband wireless internet operator.


The new Clearwire – the company Sprint Nextel Communications is forming with Craig McCaw’s Clearwire Corp. – is aiming for a network deployment that will reach up to 120 million to 140 million people in the United States by the end of 2010.

The long-anticipated news about how Sprint CEO Dan Hesse would capitalize on his company’s WiMax wireless technology advantage finally has arrived. The deal is drawing more than $3 billion from Google, Intel, Comcast and technology venture capital partners.

Sprint is merging its Xohm business with Clearwire to create a new company that will use the Clearwire name to offer broadband wireless internet to consumers and businesses. Sprint Nextel Communications will be majority owner with a 51 percent equity stake.

Benjamin Wolff, Clearwire’s current CEO, will be CEO of the new company. Barry West, Sprint’s chief technology officer and Xohm business unit leader, will be president of the new business venture. Other staffing for the company will come both from the existing Clearwire and Xohm teams.

The new company will have a headquarters in Kirkland, Wash., but it will have its research-and-development operation and a significant employee presence in Herndon, Va.

Clearwire, which will concentrate on rolling out a mobile WiMAX network, will also receive an investment from John Stanton-led Trilogy Equity Partners.

This is a good news for Motorola, who have invested heavily recently in this new wireless broadband communications technology. Motorola’s WiMAX solutions deliver standards-based, high-speed voice, data and Internet connectivity in licensed spectrum for both fixed and mobile applications. Most importantly, it's the first technology that delivers true broadband mobility at speeds that enable powerful applications such as VoIP, online gaming, mobile TV and personalized infotainment.