Monday, April 18, 2011

Sprint and Clearwire Set 4G/WiMAX Wholesale Terms

Sprint Nextel and Clearwire agreed on new wholesale pricing terms that provide Clearwire a minimum of $1 billion during 2011 and 2012 for 4G wholesale services, comprised of minimum usage commitments of $300 million in 2011, $550 million in 2012 and $175 million in pre-payments for 4G wholesale services to be used in 2011, 2012 and beyond.

Clearwire said the deal enables it continue it network expansion. Sprint said the new wholesale terms provide clarity for its current 4G business. The company reportedly is developing other LTE options.

The companies also reached an agreement covering wholesale pricing for Sprint devices that operate on both Sprint's 3G network and Clearwire's 4G network. The agreement includes usage based pricing and volume discounts and is aimed at aligning the interests of both companies to enable growth for customers using smart phones and dual-mode devices. The agreement also includes minimum payments per 4G device.

"We are pleased to reach this wholesale pricing agreement with Clearwire," said Dan Hesse, Sprint CEO. "We look forward to working with them under this new agreement to provide an expanded offering of 4G capabilities and solutions for Sprint customers."

"Sprint has been our biggest and most important customer and partner since we launched 4G services in the U.S. more than two years ago," said John Stanton, Clearwire's interim CEO. "Today's agreement further aligns Sprint and Clearwire's interests and lays the foundation for a continued, constructive relationship. We are pleased to have the resources and partnerships necessary to maintain our 4G leadership and leverage our significant spectrum and capacity for delivering mobile broadband services."

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