Thursday, December 2, 2010

Sprint Pushed for Deal Between Clearwire, T-Mobile - Bloomberg

Sprint Nextel Corp. supports a network accord between partner Clearwire Corp. and Deutsche Telekom AG’s T-Mobile USA, said Goldman, Sachs & Co. analyst Jason Armstrong, who met with Sprint management.

“Sprint indicated they have encouraged a wholesale deal,” Armstrong says. “Sprint would support a T-Mobile equity infusion into Clearwire."

There have been reports that Sprint's board was in disagreement about such a T-Mobile USA investment in Clearwire. On one hand, the deal would bring Clearwire cash it needs to finish construction of its national network. On the other hand, the deal would allow a competitor to proceed rapidly with a 4G service that might be tough to create any other way.

Were it to invest in Clearwire, T-Mobile USA would be able to buy capacity on Clearwire’s fourth-generation network at favored rates, as does Sprint Nextel.

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