US telco Sprint Nextel is in talks with WiMAX provider Clearwire on the one hand and satellite/terrestrial venture LightSquared on the other hand on the possibility of sharing its network, according to media reports.
Citing sources familiar with the…
US telco Sprint Nextel is in talks with WiMAX provider Clearwire on the one hand and satellite/terrestrial venture LightSquared on the other hand on the possibility of sharing its network, according to media reports.
Citing sources familiar with the matter, the Wall Street Journal reported today that the potential deal with LightSquared would mean Sprint allowing the other company to use its network.
In exchange, it would reportedly be paid both in cash and the use of LightSquared’s spectrum, which would potentially allow Sprint to provide services in rural areas without needing roaming agreements with competitors like Verizon.
The broad outline of the LightSquared has reportedly been agreed, but it could still fall apart.
The newspaper also reported that a deal with Clearwire could be close as the two companies have recently settled a wholesale pricing dispute.
Sprint has agreed to pay Clearwire over US$1bn in wholesale fees in total over 2011 and 2012.
Clearwire released a statement today stating that Sprint will pay minimum usage contributions of US$300m in 2011, US$550m in 2012 and US$175m in pre-payments covering both 2011 and 2012.
Sprint is the majority shareholder in Clearwire, holding a 54% stake.
With respect to the reported talks, Clearwire, LightSquared and Sprint all told TelecomFinance that they would not comment on speculation. The Clearwire spokeswoman did say that the company maintains a “close working relationship” with Sprint.
Citing sources, the Wall Street Journal also reported that a deal between LightSquared and Sprint could threaten the former’s US$7bn agreement with European vendor Nokia Siemens Networks to roll out its LTE network in the US.
Sprint announced in December a programme, known as “Network Vision”, to modernise its network of base stations.
Part of the programme involved creating more network flexibility in order to “ensure the most effective expansion of 4G”, although Sprint did not give more specific details about the kind of 4G technology the base stations would provide.
In a report from 5 April, Credit Suisse suggested that the new base stations would be CDMA, LTE and WiMAX capable.
Sprint operates iDEN and CDMA. Clearwire, in which Sprint is the main shareholder, provides 4G services in the form of WiMAX.
