Dec 1, 2008

Business - Clearwire-Sprint WiMax merger completed

Say goodbye to Sprint's XOHM service, and hello to Clearwire.

Clearwire and Sprint Nextel said Friday that they have completed the combination of their wireless services, originally announced in May.

The deal closed according to the terms laid out in May, which includes a $3.2 billion cash infusion from Comcast, Intel, Time Warner Cable, Google and Bright House Networks. Sprint contributed all of its 2.5 GHz spectrum and its WiMAX-related assets, including its XOHM WiMAX business, to Clearwire.

The XOHM WiMAX service rolled out in October in Baltimore, with hands-on tests reporting that download speeds were blazingly fast in areas of strong signal coverage, but dropped off quickly around the service's edge areas. Pricing for the mobile version of the service starts at $45 per month.

The FCC signed off on the deal in November, and shareholders approved the deal last week. Because of the timing of the deal so close to a U.S. holiday, a press conference formally announcing the deal will be held on Monday.

The new company will retain the name Clearwire and and will remain headquartered in Kirkland, Washington.