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Sprint and Clearwire Agree to Build Nationwide WiMax Network

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Alex
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Joined: 19 Sep 2006
Posts: 3084
Location: Dallas, TX

Posted: Thu Jul 19, 2007 6:35 am Post subject: Sprint and Clearwire Agree to Build Nationwide WiMax Network

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NEW YORK (AP) -- Wireless service providers Sprint Nextel Corp. and Clearwire Corp. Thursday said they signed a letter of intent to jointly construct the first nationwide mobile broadband network using WiMax technology and to promote the global development of WiMax-based services.

Mobile WiMax is a wireless broadband technology that is designed to operate more than five times faster than existing third-generation wireless networks at lower cost. WiMax is derived from the same technology as the popular Wi-Fi standard that provides wireless Internet access in such places as airports and coffee shops. Unlike Wi-Fi, which provides wireless Internet access over a several hundred foot range, a WiMax signal can blanket a much wider area.

The companies are designing the network to deliver mobile broadband services to urban, suburban and rural markets.

Sprint Nextel of Reston, Va., will focus primarily on geographic areas covering about 185 million people, including 75 percent of the people located in the 50 largest markets, while Clearwire, based in Kirkland, Wash., will focus on areas covering about 115 million people.

The network is expected to cover about 100 million people by the end of 2008.

Sprint Nextel and Clearwire said the initial term of the arrangement is 20 years, with three 10-year renewal periods. It is expected to reduce the companies' development and operating costs and increase capital efficiency, but the companies did not provide additional details.

The deal is subject to the execution of definitive agreements, which are expected to be finalized within the next 60 days. It is also subject to review by the Justice Department, and approval of spectrum license assignments and transfers by the Federal Communications Commission.

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