Sprint Nextel Seeks Help With WiMax -- WSJ

Sprint Nextel is now looking for ways to help finance its WiMax project, and is considering options such as strategic partnerships and/or cash investments from cable providers, the Wall Street Journal reports. Shareholders have expressed concern over Sprint's ambitions $3 billion WiMax project that will provide high-speed, wireless internet access to about 100 million users. The present steps may be an attempt at appeasing their concerns, the Journal says. CEO Gary Forsee mentioned earlier this week he might consider spinning of the WiMax unit, but didn't provide details. People familiar with the matter say one idea is to spin off the unit as part of a deal with Clearwire Corp., who they say has been negotiating with Sprint for months. Clearwire's own high-speed wireless internet currently boasts a mere 258,000 customers. A deal would remove it as a competitor, and give Sprint crucial access to Clearwire's southeastern radio spectrum. Forsee also mentioned bringing in cash from the outside, which sources say could be cable companies such as Time Warner Cable, which is currently partnered with Sprint in a venture called Pivot, that allows cable companies to market wireless internet. The cable companies may request discount WiMax access in return for their investment.

Sources: Wall Street Journal
Commentary: Sprint Nextel: The Next Data Wireless Kings? • Sprint/Nextel: The Next Data Wireless Kings? • Sprint Nextel Expands Mobile Cable/Telephone Partnership
Stocks/ETFs to watch: Sprint Nextel Corp. (S), Clearwire Corp. (CLWR), Time Warner Cable Inc. (TWC). ETFs: iShares Dow Jones U.S. Telecommunications Index (IYZ), PowerShares Dynamic Telecommunications & Wireless (PTE), PowerShares FTSE RAFI Telecommunications & Technology Portfolio (PRFQ), Vanguard Telecommunications ETF (VOX)
Conference call transcript: Sprint Nextel Q1 2007

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