Sprint and Clearwire close to extending their contract for another 3-5 years

Sprint and Clearwire close to extending their contract for another 3-5 years
According to Bloomberg, Sprint and Clearwire are close to extending their current contract for another 3 to 5 years. The current pact expires in 2012. Clearwire says it needs $600 million to finish building out a 4G LTE network, but Sprint says that its partner will not get any money from them. Still, Sprint can help the network operator get financing for the project; banks might be more willing to lend, or investors might be more willing to snap up bonds if a contract extension with Sprint gives Clearwire a visible source of revenue in the future. The wholesale networker has already turned to Verizon and AT&T with its hat in hand, seeking money.

A contract extension with Sprint could allow the latter to pay a lower price for access to Clearwire's network. Credit Suisse analyst Jonathan Chaplin says that currently, the carrier plays Clearwire about $10 per GB of data. He believes that a new contract would enable Sprint to pay $6-$10 per GB of data, most likely in the lower end of that range. Chaplin says that a lower cost long-term contract would obviously help Sprint but could also help Clearwire by allowing the company to get more users on its network.

Sprint is the largest shareholder of Clearwire and is also its largest customer for wholesale services. Despite the connection between the two, Sprint CEO Dan Hesse said earlier this month that his company would stop selling WiMax enabled handsets at the end of 2012 before changing his mind and negotiating the contract extension. WiMax is the name of the 4G service that Clearwire provides and Sprint has said that it plans on building out its own 4G  LTE network similar to what Verizon, AT&T and MetroPCS are doing. Sprint will be using its own spectrum and some provided to it as part of its 15 year deal that gives the nation's third largest carrier $9 billion in exchange for giving LightSquared access to its 3G pipeline. In addition, the contract gives LightSquared an option to buy half of Sprint's 4G LTE capacity.

source: Bloomberg via BGR



9. remixfa

Posts: 14605; Member since: Dec 19, 2008

they didnt "change their mind" as much as "continue supporting existing and soon to be sold wimax sets for at least the next few years". If they didnt extend the deal then everyone with Wimax sets right now would be very pissed off that they lost service.

10. ojdidit84

Posts: 462; Member since: Jul 16, 2011


11. remixfa

Posts: 14605; Member since: Dec 19, 2008


8. IamTheGodfatherofCell

Posts: 33; Member since: Oct 05, 2011

Sprint....always finding new ways of proving they are all about F A I L.

5. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Correction... Sprint. The edit function of PA doesn't seem to work on an iPad with iOS v. 5 :-(

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

So what is Print supposed to do for its customers who purchased WiMax-enabled devices? Give them the middle-fingered wave? Tell them to go to VZW? Or?

6. tomast

Posts: 50; Member since: Oct 16, 2011

Sprint will support wimax until 2015

7. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Why not? They've already done so with their other bs policy changes. No one told Sprint to stupidly go the WiMAX route with a company so deep in the hole. It's not like Sprint is doing anything else with WiMAX, might as well let the deadweight go so they can go to LTE, something the fools should've done in the first place. Verizon sucks, but I have to give them credit for their aggressive LTE expansion. That's what Sprint should've done. How ironic that they were the first ones to get "assumed" 4G and yet are in last place with it. Even AT&T and T-Mobile have HPSA+ or whatever the hell it is. AT&T is about to get LTE now.

3. akhi216

Posts: 61; Member since: May 01, 2011

Sprit is addicted to fail.

2. The_Miz

Posts: 1496; Member since: Apr 06, 2011

And there goes any chance Sprint had at improving. Clearwire is nothing but a deadweight.

1. codymws

Posts: 237; Member since: Jun 17, 2010

Sprint really shouldn't do that... Clearwire already screwed up with the WiMAX network... they don't deserve another chance.

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