Back to where we were a year ago, with the possibility of a little bonus financing from Wimax big brother Intel, and it looks like the 2 companies who can’t do it alone are joining forces again.
The deal, which could be announced in the next few days, would create a new company that combines Sprint’s licenses in the 2.5-gigahertz wireless spectrum and Clearwire’s spectrum in the same and adjoining air waves.
Additional financing is also expected from other firms, say these same sources.
Sprint and Clearwire representatives declined to comment. Intel Capital did not respond to a request for comment.
The two companies revived deal talks, according to press reports, after Sprint tore up a prior agreement in November. That earlier plan had called for Sprint to chip in $2.75 billion toward the expansion of WiMax networks to 19 cities by the end of this year, but the company pulled out of that pact in an effort to undo the work of former CEO Gary Forsee. (from TheStreet.com)
This is good news for US broadband users, and for mobile device users. While the intial 2-4 MBPS speeds to be offered are a far cry from the new world standard of 100 MBPS, reality is that is competitive with the current DSL service level that is available to most Americans. Add mobility, and availability to previously unserved and under served areas and this should be a winner if the new company will only get the word out. If they can manage a real speed boost up to the actual capability of Wimax, it could also be a duopoly killer.