Sprint Rescues Clearwire with $1.6 Billion Cash Infusion
Sprint Rescues Clearwire with $1.6 Billion Cash Infusion
Posted 12/01/2011 at 4:03pm
| by Ryan Whitwam
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Remember yesterday when we wondered aloud if Clearwire was about to default on its loan payments? Well, the day has come and big-daddy Sprint has saved the day with a big bag of money, adding to its already huge stake in the mobile broadband provider. Sprint has announced a plan to give Clearwire as much as $1.6 billion over the next four years.
Sprint’s move is as much out of shameless self-interest as it is a business deal. Sprint needs the wireless spectrum that Clearwire has licenses to in order to build its next generation 4G LTE network now that WiMAX has proved to be a flop. Clearwire was previously considering skipping its $237 million interest payment to conserve funds for the network upgrades, but that would have alienated investors that the company will be needing later.
About $926 million of the cash comes in the form of advanced payments for WiMAX usage through 2013. Sprint will continue selling WiMAX devices through 2012, and will support them for at least 2-years. At least now Clearwire can begin building that LTE network in earnest.
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Frank23
December 14, 2011 at 6:35am
Sprint brought a LOT of their problems on their own. Well before CellCo and ATT Mobility mergers. Sprint went down hill as soon as they spent the money on Nextel's iDEN network and tried to migrate customers and lost a shit load of money. They'll never recover. And instead of actually trying to compete; they raise their prices! How can you compete with that? Sprint would be better off as a wholesale network for providers. And TMO- is just TMO. They compete and have their niche markets and they know it. by having NOT having the iPhone doesn't really hurt them. They compete on price and they're doing a good job at it. They're only bleeding customers taking out constant online loans right now because people don't understand that if ATT Mobility would take over TMO- T STILL has to honor the contract of TMO's customers.
blkpanthr
December 02, 2011 at 12:08am
i have no issues with the wimax here in boston...works well...
other than the 4g radio overheating my phone on a regualr basis...lol
Holly Golightly
December 01, 2011 at 11:46pm
Hurray! Clearwire is saved. Now this is some good news we can all be proud about. Still, in the back of my mind, I fear that Clear may get bought out by Sprint in the future. The last thing I want to do is do more business with a cellphone company. Coming January, I will finally disconnect my Verizon Wireless phone once and for all. I am tired of paying unexplainable charges from Verizon. Things like Surcharges, Fees and Credits is what got consumers all heated up in the first place. Oh, lets not forget that $300 early termination fee. Wireless companies are in dire need of stiff regulation.
karlbr
December 01, 2011 at 4:51pm
how about rolling out some wimax, Sprint? Kinda tired of that extra $10 per month for nothing
I Jedi
December 01, 2011 at 6:17pm
I just dropped them two weeks ago, you should, too. Go with Verizon. Might be a bit more pricey, but it's worth having a service you can actually use.
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