Clearwire Takes Funding From Intel and Motorola

Craig McCaw's Clearwire has cancelled its planed stock market floatation and taken funding from Intel Capital, Motorola and Motorola Ventures to accelerate the development and deployment of portable and mobile WiMAX networks based on the IEEE 802.16e-2005 standard. The transactions include Intel Capital's investment of US$600 million as part of a US$900 million private financing round and Motorola's acquisition of Clearwire's subsidiary NextNet Wireless, a provider of OFDM-based non-line-of-sight (NLOS) wireless broadband infrastructure equipment. Motorola Ventures is also participating in the financing round.

Following closing of the transactions, Motorola will supply wireless broadband equipment for Clearwire's existing and future networks. To hasten the proliferation of mobile WiMAX in PC clients, Intel will work to enable the inclusion of WiMAX chipsets in next generation mobile computing platforms. All three parties will contribute significant research and development resources to evolve NextNet Wireless' pre-WiMAX technologies.

"Wi-Fi has become an essential part of people's lives. WiMAX is next. It is rapidly moving from a technology initiative to real deployments," said Sean Maloney Intel executive vice president and general manager, Mobility Group. "As Intel plans the integration of mobile WiMAX into our Centrino Mobile Technology notebook platforms, it is incredibly important to collaborate with the broadband wireless providers who will offer WiMAX services. This investment in Clearwire will lay the foundation for high-speed mobile broadband services across North America."

As part of the transaction, Motorola will acquire Clearwire's subsidiary NextNet Wireless, a fixed and portable NLOS wireless broadband equipment supplier, for an undisclosed amount. NextNet's wireless access products are currently deployed by carriers on five continents. Acquiring NextNet broadens Motorola's global portfolio of solutions to serve the rapidly growing need for wireless broadband equipment.

"Collaborating with Intel and Motorola significantly advances our vision for fixed, portable and mobile wireless broadband services," said Craig McCaw, founder, chairman, and co-CEO of Clearwire. "Wireless broadband networks will enable the creation and delivery of differentiated services and applications that enhance the way people communicate and experience the Internet."

Posted to the site on 7th July 2006