Sprint to Invest Another Billion into WiMax 4G
Sprint to Invest Another Billion into WiMax 4G
Posted 11/10/2009 at 5:27am
| by Paul Lilly
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Sprint feels awfully confident in Clearwire's WiMax 4G technology, enough so to pump another $1 billion into it, Combined with a $500 million investment from Comcast, Intel, Time Warner, and Bright House, that brings the latest round of funding to $1.5 billion, reports the Wall Street Journal.
As if billion dollar investments needed any additional intrigue, what makes this one so interesting (and risky) is that Clearwire and Sprint are the only two U.S. carriers putting faith in WiMax to usher in 4G wireless broadband. Verizon and AT&T, who happen to be the two biggest heavyweights, are banking on rival technology LTE for their 4G networks.
The gamble is huge for Sprint. Should Clearwire burn through its cash, which the company has been known to do, it will be up to Sprint to invest even more if it's to keep majority control. Sounds simple enough, except that Sprint's net debt was already approaching $16 billion at the end of last quarter.
Image Credit: Sprint
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jlh304
November 10, 2009 at 7:03am
I guess this is part of the reason sprint needs to lay off more workers. I see that Verizon and AT&T are going with LTE. If the rest of the world is following suite there, then Sprint is already doomed.
big_montana
November 10, 2009 at 8:15am
Except the rest of the world is not following suit. WiMax is currently deployed in over 145 countries. By the time LTE becomes reality (currently vapor ware) WiMax will be 2nd generation with speeds of 1 Gbps and will be available to roughly 1 billion people by end of next year. I would say the rest of the world is following Sprint and Intels lead on 4G as WiMax exists now while LTE does not. Sounds to me Sprint is the one that has made the sound investment strategy, not ATT or Verizon.
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