Sprint Chief Executive Dan Hesse and fellow executives Keith Cowan and Steven Elfman have resigned from the Clearwire board. A spokeswoman for Sprint said the company plans to appoint independent successor directors in the next few months. In the meantime, Sprint has named its general counsel, Charles Wunsch, as an independent observer to the Clearwire board.
Clearwire said that the resignations were prompted by recent changes in antitrust laws, but the move could also could provide Clearwire added flexibility to pursue a deal of some sort that might bring T-Mobile USA into Clearwire as an equity owner, for example.
On the other hand, some speculate that Sprint might also have an opportunity to increase its stake, as other shareholders such as Comcast Corp. have signaled they are unwilling to provide additional funding Clearwire requires. A move of that sort might not require a greater arms length relationship with Clearwire, though.
Clearwire said the move came "out of an abundance of caution to address questions raised by Clearwire
Clearwire's board structure allows for 13 members, seven of which Sprint has the right to appoint. The remaining four independent Sprint appointees to the Clearwire board remain.
Since Clearwire and Sprint compete at the retail level, the current board membership has proven awkward, observers note.
In some ways, it is hard to see any long-term solution that does not have Sprint acquiring a larger stake in Clearwire. Whether a firm the size of Sprint can live, long term, with buying its crucial 4G services from a firm it also competes with is open to question.
Sprint Nextel also faces the complexity of operating several different air interface networks (iDEN, CDMA and WiMAX). Those problems are not directly related to the size or control of the Clearwire network, but could become even more complicated if Sprint adds Long Term Evolution services at some point.
No comments:
Post a Comment