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