Sprint and Clearwire Ink a New Deal, LightSquared Still Looms as an Option for Switch from WiMAX to LTE
You have to have some sense of pity for Sprint, the soon-to-be sole underdog in the United States wireless industry currently suffering through a behind-the-scenes 4G identity crisis. The company has no plans to axe WiMAX anytime soon — a new deal penned with Clearwire promises that much. The agreement has Sprint paying out at least $1 billion dollars for the use of Clearwire’s 4G WiMAX network over the next two years. The bill is split up between a $175 million pre-payment, $300 million minimum commitment for this year, and at least $550 million in 2012. As part of the deal, both companies will have the right to sell off their 3G and 4G services to other partners.
Those two years leave ample time for Sprint to flesh out plans with LightSquared, the 4G LTE wholesaler the carrier has reportedly been in talks with behind closed doors. A new WSJ report has it that Sprint may soon sign a mutually beneficial deal with LightSquared that gives the startup wireless wholesaler access to Sprint’s network and spectrum with Sprint receiving a cash payout and access to LightSquared’s 4G LTE services. The expanded 4G footprint that would result form such a deal could allow for Sprint to cut back on roaming agreements with competitors — namely Verizon.
If Sprint does go the way of LTE, all major US carriers would deploy the wireless technology as their next generation network (assuming the AT&T/T-Mobile deal is approved).
[via CNET]