Sprint, Clearwire to Create One National Network

Sprint Nextel and Clearwire say they will combine their efforts and spectrum to create a national mobile WiMAX network covering the entire United States. Sprint Nextel's network would cover 185 million people while Clearwire's would cover 115 million.

Services would be sold under a common brand. The two firms have set a target of 100 million potential customers initually, by the end of 2008. There is no word on what becomes of Clearwire's VoIP deal with BCE. As part of the deal, Clearwire will have the ability to offer Sprint Nextel’s third generation voice and data services as part of a bundle or on a stand-alone basis to Clearwire’s customers, which will also allow Clearwire to provide dual-mode services to its customers.

Sprint Nextel will take the lead in establishing relationships with national distributors and other potential strategic partners, including wholesale or mobile virtual network operator (MVNO) arrangements. The initial term of the arrangement is 20 years, with three 10-year renewal periods.

Nobody has excess capital to throw into a new national broadband access network, it certainly appears.