Sprint, Clearwire Deal Called Off

Back in July, we reported on Sprint’s plans to provide national WiMax access by combining its own network with that of Clearwire – a deal that Wall Street called “a win-win transaction.�

Well, apparently someone lost. This morning, the two companies called off the budding partnership; according to a statement from Sprint, they “could not resolve complexities� necessary to finalize the agreement. The announcement does lead some in the industry to question Sprint’s commitment to its WiMax project – although the carrier says it still plans to spend up to $5 billion on deploying WiMax technology over the next three years.

Sprint’s WiMax network – known as XOHM – was expected to begin serving the Washington-Baltimore and Chicago markets by this fall, expanding to reach as many as 100 million customers by the end of 2008. Instead, the two companies’ networks will remain independent, with Clearwire continuing work on its regional services (limited to a handful of Western states) while Sprint “reviews its WiMax business plans and outlook.� The cell phone carrier does still plan on limited roll-out in the test markets mentioned above.

For now, it’s safe to consider Sprint’s nationwide WiMax efforts on hold – however, we’re expecting more definitive word from the carrier early next year.