Sprint pulls out of WiMax deal with Clearwater

Sprint was to spend $5 billion to create a WiMax network that would reach 100 million people two years from now. WiMax start-up and recent IPO Clearwire (CLWR) was also building a network. It was probably going to need to spend as much as Sprint planned to. Both companies decided to link up and cooperate on the build-out and allow one another’s customers to have free roaming privileges around the US.

Doesn’t that sound great? A service that benefits all Americans. And then Sprint goes and messes it all up. So Clearwater is left with a much less appealing service, one which they’ll be hard pressed to offer nationwide. Thankfully, other companies such as Intel, Nokia, Samsung, and Motorola have a stake in the service. They could all dump a ton of money into Clearwater in order to get this thing built and released to the public. Don’t get your hopes up, though. Douglas McIntyre of 24/7 Wall St. puts it aptly: “But, it will take something at least a bit extreme to keep WiMax in the US on track.” [24/7 Wall St.]]]>