November 09, 2007
Sprint Nextel and Clearwire Terminate WiMAX Letter of Intent
Sprint reiterates WiMAX commercial launch in 2008
RESTON, Va.--(BUSINESS WIRE)--Nov. 9, 2007--Sprint Nextel (NYSE: S) and Clearwire (NASDAQ: CLWR) have mutually agreed to terminate the Letter of Intent (LOI) signed in July 2007. The two companies could not resolve complexities associated with the LOI and failed to reach final agreement on the terms of the transaction.
Sprint remains fully committed to developing WiMAX services and deploying a WiMAX network that will allow customers to realize the benefits of a mobile broadband Internet experience. Sprint expects to continue to work together with Clearwire on future opportunities to enhance the deployment of robust WiMAX capabilities through ongoing discussions that include the possibility of roaming, frequency interference coordination, spectrum exchanges, technology evolution and development and network standards.
"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, Sprint's president of Strategic Planning and Corporate Initiatives. "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."
In light of this announcement, Sprint is reviewing its WiMAX business plans and outlook and the company expects to comment further on these topics early next year.
Sprint intends to provide services under the Xohm(R) brand, supported by an ecosystem of device, chip and other partners, including Intel, Motorola, Nokia and Samsung. The company also has selected Google to bring search, interactive communications and social networking tools through a new mobile portal to future WiMAX mobile Internet customers.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks serving about 54 million customers at the end of the third quarter 2007; industry-leading mobile data services; instant national and international walkie-talkie capabilities; and a global Tier 1 Internet backbone. For more information, visit www.sprint.com.
This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding plans for the development and deployment of a broadband network based on WiMAX technology; the timing, availability, capabilities, coverage, and costs of the WiMAX network; products and services to be offered on the WiMAX network; and other statements that are not historical facts are forward-looking statements. The words "estimate," "project," "forecast," "intend," "expect," "believe," "target," "providing guidance" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are projections reflecting management's judgment and assumptions based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.
Future performance cannot be assured. Actual results may differ materially from those in the forward-looking statements due to a variety of factors, including, but not limited to:
- the uncertainties related to the implementation of the company's WiMAX business strategies;
- the costs and business risks associated with deploying a WiMAX network and offering products and services utilizing WiMAX technology;
- the inability of third party suppliers, software developers and other vendors to perform requirements and satisfy obligations necessary to create the products and software designed to support WiMAX features and functionality;
- the impact of adverse network performance;
- other risks referenced from time to time in Sprint Nextel's filings with the Securities and Exchange Commission, including in the Form 10-K for the year ended December 31, 2006, in Part I, Item 1A, "Risk Factors."
Sprint Nextel believes the forward-looking statements in this press release are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
CONTACT: Sprint Nextel Media: Leigh Horner, 703-433-3044 Leigh.Horner@sprint.com or Investor Relations: Kurt Fawkes, 800-259-3755 email@example.com
SOURCE: Sprint Nextel