Saturday, December 3, 2011
Sprint gives Clearwire $1.6 billion golden parachute
LTE may be Sprint's future network of choice, but WiMAX will be with us for a while longer. Clearwire provides the Now Network's waves of WiMAX, but it's had recent financial troubles that it claimed could prevent it from making a required $237 million interest payment due today. However, Sprint has come to Clearwire's rescue by agreeing to pay $926 million to keep the WiMAX network running through 2015. It also pledged to kick in $350 million to help fund the firm's shift to LTE, plus another $347 million in equity funding if Clearwire can raise more than $400 million on its own.