Leading companies across industries, including Comcast,
Google, Intel
and Time Warner,
have agreed to invest in a joint venture between Sprint
Nextel and Clearwire
that is expected to be announced very soon, according to a report from the Wall
Street Journal (WSJ) on Tuesday.

Rumors of a deal involving all of the companies have been circulating for months.
The combination of valuable wireless spectrum that Sprint and Clearwire own
promises to create a company that can offer cutting-edge broadband services
across the United States and further afield. The deal also promises to offer
a much-needed boost to struggling Sprint and breathe new life into WiMax.

Clearwire already offers broadband wireless in 50 markets in the U.S. and three
European countries. Sprint has just begun launching networks, with soft launches
in Chicago and the Baltimore-Washington area.

Participation from Time Warner means that the company can contribute valuable
content for delivery to users, noted Nadine Manjaro, an analyst with ABI Research.
She also said that Google, with its reputation for innovation, is a valuable
participant in the new company.

"This would be really huge for WiMax," she said. WiMax is the wireless
technology that Sprint is using to deliver services. Clearwire is currently
using a proprietary but similar technology because it began launching service
before the WiMax standard was set.

Delays in Sprint's rollout combined with growing momentum behind another wireless
standard, LTE (Long Term Evolution) -- backed by some competing operators --
has put a damper on the WiMax industry lately. "This could finally push
it over the hump," Manjaro said.

The deal could also help "put Sprint back on track," Manjaro said.
The company has struggled recently, particularly with integration after its
acquisition of Nextel.

Comcast has agreed to contribute US$1.05 billion, Intel promised $1 billion,
and Time Warner Cable and Google plan to add about a half a billion each to
the deal, according to the WSJ. A small cable company, Bright House, also plans
to contribute $100 million, the WSJ reported.

Clearwire's CEO, Ben Wolff, would run the new company, and Craig McCaw would
continue to serve as chairman, according to the WSJ. That may leave little room
for a leadership position for Barry West, the head of Sprint Nextel's WiMax
venture. However, he had been hinting at retirement before taking on his most
recent role, so perhaps he'll do that now, Manjaro said.

IDG News Service

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