Print 12 comment(s) - last by FITCamaro.. on May 8 at 9:45 AM

Sprint will own 51% of the new Clearwire company

When Sprint first began to talk about its plans to invest $5 billion in a nationwide WiMAX network dubbed Xohm, people were excited. Then the reality of the huge cost to set up the network and financial issues with Sprint led to the realization that Sprint promised more than it could deliver.

Sprint’s WiMAX service was scaled back and delayed repeatedly due to the company’s inability to fund the project and the loss of subscribers. In the end, the best Sprint could do was produce a limited soft launch in three major cities in America.

Today Sprint announced a new agreement with Clearwire Corporation that will allow the combination of the two companies WiMAX broadband business into a new wireless company. The new company will carry the Clearwire name and will expedite the rollout of a nationwide WiMAX network.

The announcement also made public that the new company has five major technology companies as investors including Intel, Google, Comcast Corporation, Time Warner Cable, and Bright House Networks. Together these companies have agreed to invest $3.2 billion into Clearwire to fund the WiMAX rollout.

The $3.2 billion investment from the five companies will get the investors shares of Clearwire stock at a target price of $10 per share, subject to post-closing adjustment. The adjustment is to be based on 15 randomly selected days during the 30-day trading period ending on the 90th day after closing. The price per share for the stock has a cap of $23 per share and a floor of $17 per share. Trilogy Equity Partners has also announced it will invest directly in Clearwire stock.

Once the transaction is complete Sprint will hold on to the majority share of the new company with a 51% ownership and the other five new investors will hold 22% of the company as a group. Existing Clearwire shareholders will own 27% of the company.

Dan Hesse, president and CEO of Sprint said in a statement, “For Sprint shareholders, this is an opportunity to unlock and bring visibility to the value of our significant spectrum assets, technology and expertise, by leveraging the technology, applications and distribution strengths of our investors, who together command nearly a half- trillion dollars in market capitalization. We’ve made an excellent start developing XOHM WiMAX services. Contributing those advances to a strongly backed new company – in which we’ll hold the largest interest – provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business.”

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Rural
By gfredsen on 5/7/2008 7:47:38 PM , Rating: 2
I live in rural Washington State. I will believe this when I see it, or use it. Too many times I have heard about internet over the electrical lines, or the next fantastic satellite service. I even had Charter come out, but when they got here they said, "Oh no, we don't provide service here." Then why did you say you did when I spoke to you on the phone?

RE: Rural
By Bender 123 on 5/7/2008 9:11:27 PM , Rating: 4
Because its Charter...Thats why.

Seriously, everyone that complains about Comcast has no idea what the true king of suckage is. At least they manage to send data through their tubes. I think that senator had toured a Charter Network center and it literally is a series of pneumatic tubes sending paper copies of websites to peoples homes...

RE: Rural
By barjebus on 5/7/2008 11:29:27 PM , Rating: 2
I work for a company that is currently developing WiMAX technology (the equipment and hardware/software itself) and I can say quite confidently say that it does indeed work, and at excellent speeds too. VoIP, streaming video, etc., anything people would want.

I would still say reserve judgment though until you've tried it. It is absolutely 100% up to the cable companies/wireless companies as to how the network is distributed, set up, configured, and what loads they decide to place on it. Line of sight issues aren't that big a deal unless you're in some crazy concrete bunker or using a crappy WiMAX product (you wouldn't believe what some companies are trying to pass off as "working" WiMAX hardware).

Sadly though, nothing is guaranteed. The standards and certification is quite clear on various aspects of WiMAX, but these are mostly standards to encourage and foster interoperability, not to ensure speed, robustness, or up times.

RE: Rural
By AlexWade on 5/8/2008 9:13:04 AM , Rating: 1
WiMAX can probably be great if and only if Sprint isn't involved. Sprint is still trying to figure out how do a 1G service right. If you build a sorry foundation, why should I trust you to build my 2nd floor? Same concept. If Sprint can't do 1G right, why should I expect any different with 4G?

RE: Rural
By FITCamaro on 5/8/2008 9:45:38 AM , Rating: 2
As a former employee of Sprint, I had excellent service in several states. They work pretty much anywhere. I will admit AT&T has better "out in the boonies" coverage. At least when I was working there. The only reason we switched to Verizon (after I no longer worked there) was because we couldn't get reception in my parents house. Under a building, fine. In an elevator, fine. Just for some reason, my parents house was an anti-Sprint zone.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
Related Articles

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Update: Samsung Exchange Program Now in Progress
September 20, 2016, 5:30 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki