Clearwire in Talks with Major Carriers to Sell Capacity on 4G Network

U.S. wireless carrier Clearwire Corp is reportedly in talks with the country’s major telecom operators to sell capacity on its 4G wireless network.

Clearwire is talking with carriers such as Verizon Wireless, AT&T Inc. and MetroPCS Communications Inc, according to a report on Wall Street Journal.

“The talks are continuing and getting better. I'm very optimistic. I wouldn't be building the network or trying to raise money if I didn't think customers would be there in the end," the paper quoted the Clearwire’s CEO Prusch as saying.

If the talks prove successful, Clearwire may somehow get transformed from retail provider of wireless service into a wholesaler.

Analysts say wireless spectrum is in high demand in United States as networks are struggling to cope with high data consumption by devices such as smartphones. They say AT&T’s proposal to buy T-Mobile USA is primarily aimed at gaining wireless spectrum.

And some of the research firms are also suggesting that the government can raise some money for funding its stimulus programs by allocating more airwaves to telecom carriers.

But the Wall Street Journal said there were several hurdles in Clearwire’s path to let carriers ride on its network. First, Clearwire needs to get its new LTE network up and running, and then it needs to convince device makers to make new phones with chips that operate on its networks.

Clearwire expects those chips to be made in large volumes by next year and said it would take about a year to build out the new LTE network.

Interestingly, no telecom carrier has wrapped up a deal with Clearwire yet, and they are not even confirming that they are in talks.