Sprint takes control of Clearwire

The operator now owns 50.8 percent of Clearwire and may buy it outright, according to an analyst

Sprint Nextel has increased it ownership in Clearwire and now has a 50.8 percent stake in the company, according to a U.S. Securities and Exchange Commission filing.

The news comes after Japanese operator Softbank announced on Monday a US$20 billion bid for a 70 percent stake in Sprint. If that deal is approved, it will give Sprint $8 billion in new capital that is to be used to improve its finances and infrastructure.

There's probably enough money in that $8 billion pot for Sprint to buy Clearwire outright, Roger Entner of Recon Analytics said earlier this week. Clearwire is worth about $4.3 billion, and the long-term plan for Sprint was always to buy out Clearwire, according to Entner.

The U.S. operator market is going through some big changes, which also include T-Mobile's bid to buy MetroPCS.

At its core, these deals aim to position the involved operators in the best possible way as networks based on LTE are built out. The key to doing that going forward is access to as much spectrum as possible, and Clearwire has well over 100MHz of frequencies in most markets.

The more spectrum an operator has, the faster speeds it will be able to offer its subscribers.

Also, the next generation of LTE, dubbed LTE Advanced, will use a technology called carrier aggregation to increase speeds. The technology will allow operators to bunch together spectrum in different bands and use them as one data link, which will make spectrum holdings in disparate bands even more valuable.

The increase in ownership was possible thanks to the acquisition of shares from wireless pioneer Craig McCaw's, who founded Clearwire's predecessor company, investment company Eagle River Holdings

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?