Why not WiMAX?
US telco company Sprint Nextel is combining its WiMAX business, including all of its 2.5 GHz spectrum, with wireless specialist Clearwire to create a company bearing the latter’s name.
The company will get an initial investment of $3.2 billion from Intel, Google, Comcast, Time Warner Cable, and Bright House Networks to get it going.
The aim of the move is to enable the deployment of the first nationwide WiMAX network and to “unlock the potential of Clearwire's and Sprint's 4G Assets.”
Sprint will apparently own 51 percent of the company, while existing Clearwire shareholders will own 27 percent and the group of ‘strategic’ investors will have the remaining 22 percent. All of this is approximate, apparently, based on the shares being worth $20, or something like that.
“We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the U.S. to a leadership position in the global wireless industry,” said Clearwire chairman Craig O. McCaw.
"One of the fastest and most capable broadband wireless networks ever conceived"Paul Otellini, Intel president and CEO said: “The agreement also signifies growing industry support for WiMAX. Given its flexibility, coverage and speed, WiMAX will enable the mobile Internet and is already opening doors to a host of new and exciting applications, devices and business models around the world.”
WiMAX promises to offer wireless technology multiple times faster than 3G. Intel’s principle interest in it appears to be as the provider of the chipsets in mobile devices using WiMAX, as well as the general promotion of mobile internet devices, including Clearwire-brianded ones, many of which will doubtless be running on Core2 and Atom processors.
Done deals
Google appears to have booked itself the role of internet services provider of choice for the future Clearwire hardware products. The new Clearwire will apparently “support Google's Android operating system software in its future voice and data devices that it provides to its retail customers.”
Sprint, Comcast, Time Warner Cable, and Bright House Networks will enter into wholesale agreements with the new Clearwire, becoming 4G providers of its mobile WiMAX service. There seems to be a number of other deals flying around between the various parties too, which must be making all their competitors a tad nervous.
Comcast will invest $1.05 billion, Intel Capital will invest $1.0 billion in addition to its previous investments made in Clearwire, Time Warner Cable will invest $550 million, Google will invest $500 million, and Bright House Networks will invest $100 million, for an aggregate total of $3.2 billion.
The total transaction value will be approximately $14.5 billion assuming an investment price of $20.00 per share. It is expected to be completed towards the end of this year. There doesn’t appear to be a prediction of when the fruits of this deal will emerge.
