NEW YORK - An alliance of top technology and cable companies led by Sprint Nextel Corp. said yesterday that it will invest billions of dollars to build a national wireless network that offers high-speed Internet access for people at home and on the go.
Sprint, the troubled No. 3 wireless carrier, said it will combine its current mobile broadband effort with the work of wireless Internet provider Clearwire Corp., creating a $14.5 billion company called Clearwire.
Microchip maker Intel Corp., Internet search giant Google Inc. and cable providers Comcast Corp., Time Warner Cable Inc. and Bright House Networks would invest $3.2 billion in the network for a 22 percent stake in the company. Sprint would own 51 percent.
The venture, with plans to reach up to 140 million people by the end of 2010, is one of the biggest to chase the tech industry goal of bringing high-speed Internet connections to people wherever they are. It also aims to connect a range of devices including laptops, cameras and media players.
By investing in the network's WiMax technology, which offers greater range than Wi-Fi and speeds akin to cable modems, cable companies are seeking a wireless foothold and a way to fight phone company rivals AT&T Inc. and Verizon Communications Inc.
The cable companies said they will resell the Clearwire service, likely bundling it with their video, phone and wired Internet offerings. They and the new Clearwire also will sell Sprint's current wireless voice and data services.
The deal also comes only days after published reports about major potential changes for Sprint, which has struggled with slowing growth and defecting subscribers. Some reports said Germany's Deutsche Telekom AG, parent of No. 4 carrier T-Mobile, has looked into buying Sprint. Others said Sprint has been considering selling its Nextel unit.
"The company has stumbled over the last few years. This [Clearwire deal] should be a big part of the Sprint Nextel revival," said Jeff Kagan, an independent telecom analyst based in Atlanta. "This is a deal that has too many heavy hitters to fail."
Kagan said the partnerships are key to the effort, since the "companies will not only share the risk, but also the opportunity."
Sprint, based in Overland Park, Kan., had planned a commercial launch of a WiMax service called Xohm this year.
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