Clearwire Confirms Talks with T-Mobile

By: t-marco September 27th, 2010

Clearwire has confirmed that it is in talks with potential partners to take a stake in the company as it seeks to raise funds for its network expansion. The company has also not ruled out the possibility of selling some of its wireless spectrum.

Apparently Bill Morrow, CEO of Clearwire, said that having T-Mobile as an equity partner is the preferred option, with the company then offered a discounted rate for capacity rental – it was also suggested that T-Mobile may simply rent capacity, although in this case it will be charged more.

An alliance between T-Mobile and Clearwire seems to be beneficial to both parties. Clearwire is in need of capital to fund its network rollout, and having a new partner would enable Sprint to share the costs – it is not clear how much of an appetite other investors in the venture have for additional investments. T-Mobile USA also lacks spectrum for additional network rollouts beyond its current HSPA+ deployments, and its active participation in Clearwire may enable it to encourage the WiMAX player to embrace LTE, as has previously been suggested as an option.

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