Clearwire Buyout Rumored
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Sprint, the third-largest U.S. wireless operator, is discussing an
investment in Clearwire with cable companies like Comcast, reports
Bloomberg. Under one scenario being discussed, Sprint would use the
money to buy the equity in Clearwire it doesn’t own. Talks are
preliminary and no deal is imminent, reports Bloomberg.
Comcast, Time Warner Cable, and Bright House Networks are already
investors in Clearwire. They, along with Sprint, might help fund
the money-losing Kirkland, Washington-based company so it can build
out its high-speed wireless network.
While Comcast and Time Warner already resell Clearwire’s WiMax, a
Sprint wholesale agreement may allow cable companies utilize
TD-LTE. Currently, if cable subscribers also want wireless voice
service, they must use a different spectrum segment, for example
Sprint’s 3G CDMA band. In the future, Voice over LTE may integrate
both services into one 10-20 MHz band.
Clearwire plans to spend about $600 million to upgrade its network
to so-called long-term evolution, or LTE, technology.
The size and timing of the investment in Sprint haven’t yet been
determined, Bloomberg reports. The discussions involve various
scenarios, including a Clearwire buyout or an investment in the
company through Sprint, the people said. Cox Communications and
Cablevision Systems have also been in discussions with Sprint, two
of the people said.
Sprint has not yet announced official support for TD-LTE, but the
company is widely expected to make an official announcement in
early October.
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