Clearwire, Sprint Nextel Complete Transaction and $3.2 Billion Investment to Launch 4G Mobile Internet Company
Clearwire Corp. has completed the transaction with Sprint Nextel Corp. to combine their next-generation wireless Internet businesses. The new company retains the Clearwire name and expects to build the first nationwide 4G mobile broadband network focused on meeting the evolving needs and demands for Internet-based communications services. In addition, Clearwire has received a $3.2 billion investment from Comcast, Intel, Time Warner Cable, Google and Bright House Networks. The transaction with Sprint and the new cash investment were completed on the terms originally announced on May 7, 2008.
"As we roll out our network across the country, people will no longer have to make the choice between speed and mobility. We are bringing a new mobile Internet experience to customers at speeds previously relegated to fixed locations," says Benjamin G. Wolff, chief executive officer of Clearwire. "With significant spectrum holdings yielding unmatched network capacity, a next-generation all-IP network, and an open Internet business model, Clearwire will deliver a simple value proposition aimed to improve productivity and make the Internet experience more enjoyable, wherever our customers happen to be."
"With the global economic challenges ahead for consumers and businesses next year, we believe it’s important to invest in those infrastructure improvements that can propel the U.S. forward and stimulate innovation," continues Wolff. "Today is just the beginning. Over the coming years, as Clearwire rolls out ultra high-speed mobile Internet services across the country, we expect to be well positioned to transform the communications landscape."
Clearwire Chairman, Craig O. McCaw adds: "This is not simply about a time-to-market advantage, but about having an amazing block of spectrum that is unencumbered by legacy commercial uses and technology. It is a chance to do something right the first time, with simplicity and incredible efficiencies. We are building a wireless broadband network that will stand the test of both time and competition. This is far and away the most exciting opportunity in wireless I have seen since the beginning of cellular in 1983."
"This is the beginning of a new chapter in wireless that leverages Sprint’s investment in 4G to profoundly change how people and businesses send, receive and use information," says Dan Hesse, chief executive officer of Sprint and member of Clearwire’s Board of Directors. "As the largest shareholder in Clearwire, Sprint is uniquely positioned to provide customers with both the largest and most dependable 3G network in America and access to the nation’s first 4G mobile broadband network."
