Sprint and Clearwire Strike Wireless Deal

During a conference call, Sprint CEO Dan Hesse said the partnership is very much a win for Sprint and the cable companies involved, calling it "a much simpler, more straight forward" way for cable companies to bring wireless to their customers while touting the advantages a WiMax rollout will bring to Sprint.

"We have focused our company on wireless and data, and this will accelerate our position as the clear leader," Hesse said. "Under the Sprint brand, we will have an arrow in our quiver when we go to market that none of our competitors will have."

Hesse said that a nationwide rollout of the WiMax technology would come before the end of 2008, and that Sprint will not be required to put more money into the venture. Clearwire will be required to raise more up to $2.3 billion more to cover the gap in funding.

During the call, Clearwire CEO Ben Wolff said that the announcement of the WiMax venture has garnered more attention, and that others could invest in the technology the same way Intel, Google and the cable operators have.

Stifel Nicolaus analyst Christopher King says he remains somewhat skeptical regarding the long-term viability of WiMax to compete with newer so-called 4G networking platforms, including LTE, but the cash infusion from the group of investors should improve the chance for success.

"We believe the $3.2 billion in outside funding will allow Clearwire and Sprint Nextel to make significant strides in building out their WiMax network to allow WiMax an important first-mover advantage in the wireless broadband world," King wrote in a research note.