Sprint Ditches Clearwire, Rethinking WiMAX

Sprint and Clearwire have broken off their agreement to work together on deploying a WiMax network, leaving Spring to re-examine its WiMax plans.

Telecommunications operator Sprint and high-speed wireless company Clearwire have announced they’re mutually calling off an agreement to work together on deploying a nationwide high-speed WiMax network by the end of 2010. According to Sprint, the companies could not see their way through the “complexities” involved in the agreement and could not agree to terms of a formal business arrangement.

“We are on track for soft launch late this year in the Chicago and Baltimore/Washington markets and commercial launch in 2008,” said Keith Cowan, president of Sprint’s strategic planning and corporate Initiatives, in a statement. “In line with Sprint’s mandate of improving the customers experience and simplifying our operations, we look forward to working with Clearwire on opportunities such as roaming and standards.”

The announcement may have a negative impact on Clearwire, which was founded by mobile communications pioneer Craig McCaw. Clearwire is up and running in a selection of U.S. of markets (including parts of the west and eastern seaboard, along with areas of Texas, Minnesota, Wisconsin, Tennessee, and Ohio), but the company has bee seeing its costs exploding, and Clearwire just posted a quarterly loss five times wider than its loss a year ago.

Sprint has been under pressure from investors to scale back its planned $5 billion investment in WiMax service (recently dubbed “Xohm”). Sprint said it still remains committed to building a WiMax network, but is reviewing its business plan and outlook in the wake dissolving the planned Clearwire pact. It expects to offer more information in early 2008.