Sprint Shuffle Squeezes Intel

Stock quotes in this article: S , INTC , AMD , CLWR  

Whether Intel would feel compelled to jump into the fray and open its wallet in order to keep an orphaned Sprint WiMax project moving forward is impossible to say. It's highly unlikely that Intel would foot the enormous bill necessary to build out the network.

But Intel's track record suggests the company could play a more active role in Sprint's WiMax network should it become an independent entity. In fact, Intel may even see a benefit.

Intel's 2006 deal with Clearwire features a revenue-sharing agreement that gives Intel a slice of the recurring subscriber fees, as well as a one-time payment for each new customer that signs up for the service using an Intel-based device.

That arrangement allows Intel to profit from both sides of the WiMax phenomenon -- the initial chip sales and the subsequent service fees. Intel also would presumably have a better chance of striking another such deal with a cash-hungry independent carrier than with a behemoth like Sprint.

Intel clearly wants WiMax to become the new global network -- it may soon have a chance to prove how much.

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