Intel to Invest in Sprint-Clearwire WiMax?

Sprint and Clearwire are still trying to work out how to deploy a nationwide WiMax network...and Intel may ride to the rescue with $2 billion.

Sprint and Clearwire have been dancing around the idea of deploying a nationwide WiMax service (dubbed “Xohm”) that would offer wireless broadband services in most areas of the United States for mobile technology users. In November, Sprint called off the WiMax deal in the face of the enormous costs of rolling out the network, but last month reports began circulating that the company was again talking WiMax with Clearwire, trying to figure out a way to make things work.

Now, The Street is reporting that Sprint and Clearwire may have found an investment partner in chipmaker Intel. According to the report, the companies would found a joint venture to deploy nationwide WiMax service, fueled by a $2 billion contribution from Intel, as well as funding from other firms. A deal could be announced in the next few days.

A joint venture with Intel would solve some of Sprint’s financial issues with WiMax: the company had planned to sink as much as $5 billion to roll out WiMax service, with $2.75 billion of that going towards introducing WiMax in 19 U.S. cities. A joint venture would let Sprint keep an interest in rolling out WiMax technologies while shifting much of the cost to Intel. Intel, in turn, benefits by fueling a demand for WiMax chipsets and devices. And Clearwire, which is already operating wireless broadband services in some locations, would get a cash infusion to continue operations.