Clearwire Approves Merge with Sprint, Eyes Year-End WiMax Deployment

Clearwire Corp. shareholders reportedly have approved a plan that would see their company merge with Sprint Nextel Corp.’s wireless broadband network.

 

The personal broadband and mobile Internet service provider’s shareholders voted in favor of combining with Sprint’s mobile WiMax business. As part of the deal, they also approved an investment of $3.2 billion by Intel, Google, Comcast, Time Warner Cable, Bright House Networks and Trilogy Partners, to form the new company – a move that the company says will lead to “paving the way for a new era in mobile Internet services in the (United States).”

 

According to Benjamin G. Wolff, chief executive officer of Clearwire, the shareholders took a transformative step toward enabling an entirely new mobile Internet experience for consumers and businesses.

 

“With an unmatched spectrum portfolio, a next generation all IP network, an ever-expanding ecosystem of mobile 4G devices, and the backing of some of the most innovative communications, entertainment and technology companies in the world, Clearwire is ready to redefine mobile Internet services in the (United States),” said Wolff, pictured right.

 

Under the agreement, Clearwire and Sprint will combine their respective next-generation mobile Internet businesses to accelerate the deployment of the first nationwide mobile 4G network. The effort is expected to meet a rapidly growing consumer demand for access to Internet-based content, applications and services anytime and anywhere.

 

Founded in October 2003 by wireless pioneer Craig O. McCaw, Kirkland, Washington-based Clearwire provides wireless high-speed Internet services. Its customers connect to the Internet using licensed spectrum, eliminating the need for traditional cable or phone lines.

 

According to Reuters, shares of both Clearwire and Sprint were down sharply following the news.

 

“Clearwire fell 23 percent to $4.46 at mid-afternoon on Nasdaq,” the news service’s Sinead Carew reports. “Sprint dropped 20 percent to $1.50 on New York Stock Exchange.”

 

According to reports, the “new” Clearwire could have its WiMax technology available to 120 million people before the close of this year, with an eye on growing to 200 million by 2015.