"NEW YORK (Reuters) - Sprint Nextel Corp (S.N) and Clearwire Corp (CLWR.O) are planning a $14.5 billion venture to build a wireless high-speed Internet network based on the emerging WiMax technology.
Comcast Corp (CMSCA.O), Time Warner Cable Inc (TWC.N), Intel Corp (INTC.O), Google Inc (GOOG.O) and cable operator Bright House Networks are expected to kick in $3.2 billion to help finance the venture.
The deal, announced on Wednesday, will provide much needed funding for Sprint and Clearwire and allow cable providers to offer wireless services to help them compete with rivals AT&T Inc (T.N) and Verizon Communications (VZ.N).
AT&T and Verizon have been battling for market share from cable companies by offering packages of television, Internet, phone and wireless services.
WiMax promises to blanket entire cities with Web access for laptops, cell phones and other wireless devices at speeds up to five times faster than traditional wireless networks but is a largely unproven technology. Wi-Fi, by contrast, is a short range service covering small areas like coffee shops."
Link to full article
Leave a comment