Thursday, May 8, 2008

Nationwide Wireless Network

Sprint Nextel, Clearwire, Google, Intel, Comcast, and Time Warner have all come together under the name of Clearwire, in an effort to produce a nationwide wireless network. The deal is estimated to be approximately 14.5 billion dollars. The investment by the five strategic investors will be based on a target price of $20.00 per share of Clearwire's common stock, subject to a post-closing adjustment. This adjustment is based upon the trading prices of new Clearwire common stock on the NASDAQ Market over 15 randomly selected trading days during the 30-trading day period ending on the 90th day after the closing date. The price per share will be based upon the volume weighted average price on such days and is subject to a cap of $23.00 per share and a floor of $17.00 per share. In addition, Trilogy Equity Partners, led by wireless veteran John Stanton, will invest directly in the new Clearwire's common stock.

The deal, which has been approved by the boards of all companies involved, is expected to close during the fourth quarter. The company will apply for a Nasdaq listing under the ticker "CLWR."
The new company is looking for a US network deployment reaching 120 million to 140 million people by the end of 2010. Company officials said they'll need up to $2.3 billion more in funding by getting additional investors or borrowing. They also could simply shrink the size of the network.
The network is predicted at being so fast that it will deliver video and advertising as well as text and simple Web pages.

Benjamin G. Wolff, chief executive officer of Clearwire, said, "The combination of robust next-generation mobile WiMAX technology and nationwide spectrum that we believe is optimal for delivering mobile broadband services - coupled with substantial new financial resources, a team of experienced wireless industry veterans, and distribution and technology agreements with some of our nation's leading communications, technology and content companies - creates what I believe to be a once-in-a-lifetime opportunity. "

In addition to its investment in the venture, Google will integrate many of its online services with Sprint’s forthcoming WiMAX networks. The Mountain View, California-based search engine will become Sprint’s default mobile search provider, and Google Maps Mobile and YouTube accessibility will be offered on all new Sprint handsets.

"This exciting new venture enables Time Warner Cable to help shape the next generation of wireless services in ways that will complement and enhance our products and services," said Glenn Britt, Time Warner Cable's president and chief executive officer. "We're committed to giving our customers more control over how and where they can easily connect to what's important to them - entertainment, information, and each other. The agreements we're announcing today are a financially prudent way for us to add mobility to our offerings when our customers demand it."

Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today's 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multimedia applications, such as live videoconferencing, recorded video, games, large data files and more - anywhere in the network coverage area.

Watch here the full story from Reporter Abby Prince.

Source WebProNews

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