Will Sprint Let T-Mobile into Clearwire?

The Real T-Mobile has been reporting for months on T-Mobile’s plans for the next-generation network. While T-Mobile USA touts its HSPA+ build-out in several cities (click here for a recent article), most observers believe that the company needs to come up with a 4G solution in order to gain market share in the U.S.

So along comes yet another speculative piece in the Wall Street Journal. Sprint is the Number 3 wireless carrier in the U.S., T-Mobile is Number 4. Sprint has developed 4G capacity through Clearwire Corp., a joint venture in which it holds 54 percent. Clearwire is a provider of 4G Broadband services using the WiMAX technology, and its strategic investors include Sprint, Comcast, Google, Time Warner Cable, and Intel.

So Sprint has capacity and needs buyers, and T-Mobile needs capacity and is looking for a hook-up. Moreover, Clearwire also needs additional funding to build out beyond the 49 cities where it currently exists. The T-Mobile-Sprint dance has been the story line for other posts on this web site. (Click here  and here  for recent articles.)

The dilemma for Sprint: does it allow a competitor into Clearwire? It could do so in two ways: allow T-Mobile to become a purchaser of Clearwire service or allow it to become an investor. The real question is does the desire for investment exceed the desire to beat a competitor? Or does a more formal partnership solve the problem?

Click here for the full article.

Photo:  cote