Sprint to Combine High-Speed Network With Clearwire - GoFuckYourself.com

Barefootsies · 05-07-2008, 04:25 AM

May 7 (Bloomberg) -- Sprint Nextel Corp. is combining its planned high-speed wireless network with Clearwire Corp., creating a venture with funding from technology and cable companies.

Intel Corp., Comcast Corp., Time Warner Cable Inc., Google Inc. and Bright House Networks will invest $3.2 billion in the new company, Sprint Nextel and Clearwire said in a Business Wire statement. The network uses a technology called WiMax.

The agreement lets Sprint scale back spending after an exodus of mobile-phone customers hurt profit last year. It also builds support for WiMax, which can blanket whole cities with network coverage. The technology may help Sprint compete with larger rivals AT&T Inc. and Verizon Wireless by providing faster Internet access.

``This could remove a potential distraction'' for Sprint, Michael Nelson, an analyst at Stanford Group Co. in New York, said before the announcement. ``They need to increase their focus on fixing their core business.''

The investment from the cable and technology companies will be based on a target price of $20 a share for Clearwire's stock, according to the statement. The price will be adjusted based on the average price of Clearwire's new shares on 15 randomly chosen days after the deal closes. The price will be subject to a cap of $23 a share and a floor of $17.

Trilogy's Investment

Trilogy Equity Partners, the investment firm co-founded by John Stanton, the former Western Wireless Corp. chief executive officer, will invest in the new Clearwire common stock. Sprint Nextel will own about 51 percent of the new company, while existing Clearwire shareholders will have about 27 percent and the investors as a group will hold about 22 percent.

Sprint enlisted big technology companies such as Google and Intel to take on AT&T and Verizon, the two largest U.S. mobile- phone companies. Sprint is the only one of the three carriers to commit to the WiMax technology, which risks limiting the standard to a smaller pool of users. The company lost more than 1 million mobile-phone contract customers in 2007.

``In terms of economies of scale for WiMax, Sprint's deal is the biggest deal out there,'' Yankee Group analyst Phil Marshall said in an interview from Boston. ``The WiMax industry is holding out very high hopes for the Sprint network to be successful.''

WiMax offers wider coverage than today's wireless-fidelity, or Wi-Fi, systems, which deliver Internet access to smaller areas such as buildings and parks. While AT&T and Verizon are backing a rival technology called Long Term Evolution, they say it may not be ready for at least two years.

Earlier Accord

Clearwire and Sprint had scrapped a WiMax alliance in November after agreeing in July to team up. The new accord may bolster Clearwire, which has yet to turn a profit and posted a $727.5 million net loss last year. Its stock has declined 8.7 percent since Nov. 8, the day before Sprint and Clearwire ended their original agreement.

``This certainly would be a positive development for both Sprint and Clearwire shareholders,'' Nelson said. ``It's a positive for Sprint, but potentially transformational for Clearwire.''

Comcast and Time Warner Cable, which compete with AT&T and Verizon Communications Inc. for land-line phone and Internet connections, can use WiMax to challenge their rivals' mobile- phone services.

Arvind Sodhani, president of Intel's investment arm, initiated talks on the new agreement after the previous deal between Sprint and Clearwire failed, according to a person familiar with the matter. Sodhani was a board member at Kirkland, Washington-based Clearwire from August 2006 until last December.

Intel's WiMax Push

For Intel, the world's largest semiconductor maker, WiMax is a way to entice consumers and businesses to buy new laptop computers. Intel has relied on earlier wireless technologies to spur sales of its Centrino laptop chips. The company has updated the Centrino products every year since their debut in 2003, adding capabilities such as faster Wi-Fi transmitters.

Intel, the largest shareholder in Clearwire with a 20 percent stake, will begin including WiMax radio chips in Centrino products in the second half of this year.

The company uses its Intel Capital investment arm to spur the growth of technologies that will benefit sales of its microprocessors. The investment unit spent $639 million on 166 deals last year.

http://www.bloomberg.com/apps/news?p...myk&refer=home

dirtysouth · 05-07-2008, 05:52 AM

From a stock market n00b, would Clearwire be a wise investment now?

https://www.etrade.wallst.com/v1/sto...sp?symbol=CLWR

GrouchyAdmin · 05-07-2008, 05:58 AM

Clearwire was awful 5 years ago. It manages nearly line of sight. Good luck to anyone on the investor end.

05-07-2008, 04:25 AM	#1
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	Sprint to Combine High-Speed Network With Clearwire May 7 (Bloomberg) -- Sprint Nextel Corp. is combining its planned high-speed wireless network with Clearwire Corp., creating a venture with funding from technology and cable companies. Intel Corp., Comcast Corp., Time Warner Cable Inc., Google Inc. and Bright House Networks will invest $3.2 billion in the new company, Sprint Nextel and Clearwire said in a Business Wire statement. The network uses a technology called WiMax. The agreement lets Sprint scale back spending after an exodus of mobile-phone customers hurt profit last year. It also builds support for WiMax, which can blanket whole cities with network coverage. The technology may help Sprint compete with larger rivals AT&T Inc. and Verizon Wireless by providing faster Internet access. ``This could remove a potential distraction'' for Sprint, Michael Nelson, an analyst at Stanford Group Co. in New York, said before the announcement. ``They need to increase their focus on fixing their core business.'' The investment from the cable and technology companies will be based on a target price of $20 a share for Clearwire's stock, according to the statement. The price will be adjusted based on the average price of Clearwire's new shares on 15 randomly chosen days after the deal closes. The price will be subject to a cap of $23 a share and a floor of $17. Trilogy's Investment Trilogy Equity Partners, the investment firm co-founded by John Stanton, the former Western Wireless Corp. chief executive officer, will invest in the new Clearwire common stock. Sprint Nextel will own about 51 percent of the new company, while existing Clearwire shareholders will have about 27 percent and the investors as a group will hold about 22 percent. Sprint enlisted big technology companies such as Google and Intel to take on AT&T and Verizon, the two largest U.S. mobile- phone companies. Sprint is the only one of the three carriers to commit to the WiMax technology, which risks limiting the standard to a smaller pool of users. The company lost more than 1 million mobile-phone contract customers in 2007. ``In terms of economies of scale for WiMax, Sprint's deal is the biggest deal out there,'' Yankee Group analyst Phil Marshall said in an interview from Boston. ``The WiMax industry is holding out very high hopes for the Sprint network to be successful.'' WiMax offers wider coverage than today's wireless-fidelity, or Wi-Fi, systems, which deliver Internet access to smaller areas such as buildings and parks. While AT&T and Verizon are backing a rival technology called Long Term Evolution, they say it may not be ready for at least two years. Earlier Accord Clearwire and Sprint had scrapped a WiMax alliance in November after agreeing in July to team up. The new accord may bolster Clearwire, which has yet to turn a profit and posted a $727.5 million net loss last year. Its stock has declined 8.7 percent since Nov. 8, the day before Sprint and Clearwire ended their original agreement. ``This certainly would be a positive development for both Sprint and Clearwire shareholders,'' Nelson said. ``It's a positive for Sprint, but potentially transformational for Clearwire.'' Comcast and Time Warner Cable, which compete with AT&T and Verizon Communications Inc. for land-line phone and Internet connections, can use WiMax to challenge their rivals' mobile- phone services. Arvind Sodhani, president of Intel's investment arm, initiated talks on the new agreement after the previous deal between Sprint and Clearwire failed, according to a person familiar with the matter. Sodhani was a board member at Kirkland, Washington-based Clearwire from August 2006 until last December. Intel's WiMax Push For Intel, the world's largest semiconductor maker, WiMax is a way to entice consumers and businesses to buy new laptop computers. Intel has relied on earlier wireless technologies to spur sales of its Centrino laptop chips. The company has updated the Centrino products every year since their debut in 2003, adding capabilities such as faster Wi-Fi transmitters. Intel, the largest shareholder in Clearwire with a 20 percent stake, will begin including WiMax radio chips in Centrino products in the second half of this year. The company uses its Intel Capital investment arm to spur the growth of technologies that will benefit sales of its microprocessors. The investment unit spent $639 million on 166 deals last year. http://www.bloomberg.com/apps/news?p...myk&refer=home __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"

05-07-2008, 05:52 AM	#2
dirtysouth Confirmed User Join Date: Jul 2003 Location: Mobtown Posts: 2,613	From a stock market n00b, would Clearwire be a wise investment now? https://www.etrade.wallst.com/v1/sto...sp?symbol=CLWR __________________ no sig

05-07-2008, 05:58 AM	#3
GrouchyAdmin Now choke yourself! Industry Role: Join Date: Apr 2006 Posts: 12,085	Clearwire was awful 5 years ago. It manages nearly line of sight. Good luck to anyone on the investor end. __________________ AIM: GrouchyGfy