Sprint Reviewing WiMax Options


Sprint (NYSE: S) Nextel is “weighing various changes to its plans to offer high-speed wireless Internet service using WiMax technology”, according to anonymous sources quoted in the WSJ. The new network certainly isn’t a favorite with investors, but Sprint currently claims it remains committed to the project and is on track for the soft launches in Chicago, Washington, D.C., and Baltimore in the next months. However, it has scaled back its rhetoric over further roll-out plans for 2008, indicating it’s not entirely sure it can withstand investor disapproval. “Any radical restructuring of the WiMax initiative would likely have to wait for the new CEO to be hired, a process that could take months, people close to the discussions say. A publicly traded WiMax spinoff would satisfy Sprint investors who are skeptical of WiMax, but would allow investors who are bullish on the new and relatively untested technology to make a bet on it” notes the WSJ. The company is also heavily in talks with Clearwire, with a tentative partnership announced in July but the final details haven’t been finalized, apparently. The next CEO will probably determine the ultimate fate of Xohm.

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