Sprint, Clearwire To Reforge WiMax Pact

According to sources, Sprint and Clearwire are set to re-announce a more concrete deal regarding WiMax. Those who are party to the discussions say that a huge cash infusion from Intel, to the tune of $2 billion, is helping to seal the deal. WiMax may have a future after all.The deal is going to be announced at any moment, says The Street. Sprint, Clearwire, Intel, and other investors will create a new company (name unknown) that would merge Clearwire's and Sprint's WiMax wireless spectrum and licenses. This new company would then tackle the responsibility for launching and running a national or semi-national WiMax network. This should be a relief to Sprint shareholders.

If there's one thing new Sprint CEO Dan Hesse needs to do, it is calm the rough seas being faced by its shareholders. Deciding what to do with its WiMax plans and assets is a major part in helping calm those waters. By pairing with Clearwire, Intel, and others, this could relieve a lot of pressure from Hesse, and allow Sprint to return some of its focus on its core cellular phone business. This also means that Sprint will retain its 4G strategy, which it will need if it intends to keep up with (or at least not fall any further behind) AT&T and Verizon Wireless.

Intel also comes out a winner here. It has invested gobs of money in helping to develop WiMax. Even though it's forking out additional capital, WiMax doesn't have much of a future in the United States unless some big companies get behind it and deploy it. If no one does, Intel will be among the biggest losers.

Over The Air will keep its eyes on the wires and be sure to let you know the moment any news breaks.