Mobile operator Sprint Nextel will scrap itsagreement with Clearwireto jointly
build a nationwide high-speed wireless network based on Wimax
technology. The two companies could not resolve complexities
associated with their July co-signed agreement and failed to reach
final agreement on the terms of the transaction.
"In July 2007 when Sprint and Clearwire announced their
intention to join their networks, we published a comment stating
that the partnership was primarily aimed at lowering the overall
Wimax network development and operating cost for both companies,"
said Julien Grivolas, senior analyst at Ovum. "Based on the former
LOI terms, Sprint Nextel was due to be responsible for deploying
65% of the network, which was expected to cover approximately 100
million people by the end of 2008. We estimated that Sprint would
have saved around 30% on its £1.25m-£1.5m of Wimax CAPEX originally
announced for the 2007-2008 period thanks to this agreement."
"The fact that Sprint could potentially downsize its
Wimax plans is bad news for Wimax in general. Since Sprint
revealed its Wimax plans, the operator has been playing a critical
role in the Wimax industry, giving a huge boost to the technology
in terms of credibility first but also in contributing to create a
strong ecosystem around the technology," added Grivolas.