Intel is reported to be preparing to make a US$2 billion investment in a remerged Sprint Nextel-Clearwire WiMAX network, according to a published report Friday. Both companies refused to comment on the report in TheStreet business news publication.
"Rumors are just kicking around again. It's rumor," Sprint spokesman John Polivka said. "We don't comment on rumors. There's nothing going on." Intel spokesman Kari Aakre: "We're not commenting on any speculation. It's our policy to not comment on rumors."
Last November, Sprint Nextel and Clearwire cancelled plans to jointly rollout a nationwide WiMAX network, although both companies have remained committed to the technology. Sprint Nextel has come under investor pressure to either scrap its WiMAX plans, or to push ahead and renew the agreement with Clearwire.
Intel's investment is reported to be conditional on the three companies forming a new merged entity to build out a nationwide WiMAX network. Merging their network and spectrum assets would make it harder for the two network operators to have another divorce - which would threaten the value of Intel's investment. Intel has an existing financial stake in Clearwire and is also set to gain significant hardware sales if WiMAX takes off in a big way.
In a move which may be coordinated, or simply coincidental - Motorola took a 12.5% stake in Clearwire, according to a filing with the Securities and Exchange Commission. Motorola reported the stake in a Schedule 13G filing, which suggests that the investment is passive and that the company does not seek to change or influence control of the company.
On the web: TheStreet
Posted to the site on 17th February 2008
Posted to: www.cellular-news.com/story/29376.php