Home WiMAX News Sprint’s $1 Billion Infusion in Clearwire Demonstrates WiMax Commitment

Sprint’s $1 Billion Infusion in Clearwire Demonstrates WiMax Commitment


Sprint and Clearwire have finally resolved their issues, agreeing on new wireless wholesale terms resulting in Sprint injecting $1 billion into Clearwire during this year and the next. This is interesting considering the rumors that Sprint was evaluating a move to LTE for 4G, however, this move shows that Sprint's plan is to continue to utilize their 4G WiMAX network that's currently available in 70+ markets. It looks like 2011 will be the year that the companies really race to complete deployment. Sprint currently has the lead over Verizon, which only offers LTE in 40 markets currently. With Sprint investing this amount of money into WiMAX it demonstrates their commitment to 3G/4G wireless modems and owners of smartphones like the HTC EVO, Samsung Epic and HTC EVO Shift.  

This agreement will help both Sprint and Clearwire and "allow wholesale pricing for Sprint devices that operate on both Sprint’s 3G network and Clearwire’s 4G WiMax network," according to Light Reading. There is no doubt this will help Clearwire, who desperately needs cash to continue their 4G deployment. Analyst Michael Nelson, from Mizuho Securities USA, expects more network sharing agreements might occur down the road. “We continue to expect Sprint to enter into network sharing deals with Clearwire and LightSquared, which should offset some of the cost associated with Sprint’s Network Vision plan,” he said in a research note on Tuesday. Sprint and CLEAR's 4G WiMAX typically offer speeds of 3-6Mbps download and uploads of 1Mbps.


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