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Sprint Nextel and Clearwire to Partner

Consumers, Businesses and Public Safety Agencies to Benefit from More Coverage Sooner and Enhanced Network Capabilities

Business Wire

Context & Ripple Effects

Sprint had already been emphasizing the combined reach of its two existing networks in January 2007. The Clearwire arrangement extends that coverage-led strategy into WiMax: syndicated coverage framed the announcement as a roaming deal and a national-network build, while Clearwire had also said its FCC-approved WiMax laptop card was due later in 2007.

The announcement also gives substance to reports that Sprint was exploring ways to finance an ambitious WiMax buildout, including possible outside partners; those financing reports remained unconfirmed.

First-order effects

  • Sprint Nextel and Clearwire can coordinate WiMax coverage and roaming, giving their consumer, business and public-safety customers a broader prospective service footprint than either network would offer alone.
  • Clearwire gains a major carrier partner for the WiMax service it planned to support with a laptop card later in 2007.

Second-order effects

  • Sprint's network strategy shifts from combining its own networks toward pairing carrier distribution with Clearwire's WiMax build, increasing the pressure to turn coverage cooperation into compatible devices and service plans.
  • Any outside funding discussions around Sprint's WiMax build become more consequential because a shared network plan concentrates the buildout around two named operators, though the reported financing options were unconfirmed.

Third-order effects

  • The partnership points to broadband wireless networks being built through roaming and infrastructure alliances rather than solely through one carrier's footprint, with device interoperability becoming central to scale.

The trend: WiMax is being positioned as a national broadband service through carrier-network partnerships that join coverage, roaming and device access.