Sprint Nextel (NYSE:S) and Clearwire (NASDAQ: CLWR) have ended their current plans to collaborate on a WiMAX network. The announcement may also have ramifications for Israeli WiMAX firm Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) which develops WiMAX systems and products.
Sprint reported that it remained fully committed to developing WiMAX services, and did not rule out future plans with Clearwire.
“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.”
The firms announced that they "mutually agreed to terminate the letter of intent signed in July 2007", as they could not resolve complexities associated with the LOI and failed to reach final agreement on the terms of the transaction." In light of the announcement, Sprint is reviewing its WiMAX business plans and outlook and the company expects to comment further on these topics early next year.
Alvarion fell 4.1% to $9.92 on Friday in Nasdaq trading, reflecting a market cap of $620.1 million. In after hours trading it fell a further 0.8% to $9.84.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2007
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