Sprint Nextel, Clearwire, and Other Key Investors' Strategic Thinking behind New WiMAX Joint Venture

In early May 2008 Sprint Nextel and Clearwire announced plans to create a new company with investments from companies such as Intel, Comcast, Google, Time Warner Cable and Bright House Networks. The new company will take control of Sprint' s existing XOHM service, continue to roll out WiMAX networks throughout the United States and offer mobile broadband services. This report examines major investors' strategic considerations behind their involvement in the new company, which will provide a boost for the development of WiMAX in North America, a key region for the future success of the technology. The establishment of the new company is scheduled for the fourth quarter of 2008, so network deployment this year is expected to slow down. Also, the new company will have to contend with issues such as attracting sufficient capital to compete in the communications market, and harmonizing the diverging interests of all involved stakeholders.