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Sprint Nextel and Clearwire Terminate WiMAX Letter of Intent
Posted: 09-Nov-2007 [Source: Sprint]

[Companies terminate letter of intent stating they could not reach a final decision on the terms of the transaction. Sprint restated its comnittment to WiMAX set for commercial launch next year.]

Reston, VA -- Sprint Nextel and Clearwire have mutually agreed to terminate the Letter of Intent (LOI) signed in July 2007. The two companies could not resolve complexities associated with the LOI and failed to reach final agreement on the terms of the transaction.

Sprint remains fully committed to developing WiMAX services and deploying a WiMAX network that will allow customers to realize the benefits of a mobile broadband Internet experience. Sprint expects to continue to work together with Clearwire on future opportunities to enhance the deployment of robust WiMAX capabilities through ongoing discussions that include the possibility of roaming, frequency interference coordination, spectrum exchanges, technology evolution and development and network standards.

"We are on track for soft launch late this year in the Chicago and Baltimore/Washington markets and commercial launch in 2008," said Keith Cowan, Sprint's president of Strategic Planning and Corporate Initiatives. "In line with Sprint's mandate of improving the customers experience and simplifying our operations, we look forward to working with Clearwire on opportunities such as roaming and standards."

In light of this announcement, Sprint is reviewing its WiMAX business plans and outlook and the company expects to comment further on these topics early next year.

Sprint intends to provide services under the Xohm brand, supported by an ecosystem of device, chip and other partners, including Intel, Motorola, Nokia and Samsung. The company also has selected Google to bring search, interactive communications and social networking tools through a new mobile portal to future WiMAX mobile Internet customers.

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