Sprint Nextel Corp. completed their merger agreement with Clearwire Corp. on Friday for the creation of a new wireless network using WiMax, as reported by the Associated Press. WiMax is a new technology that is stated to work with faster speeds than other cell phone networks, and the company is hoping to ensure its availability for more than 100 million people. Clearwire will continue to use its name for the newly formed company.
Clearwire is stated to currently use a network with similar features of WiMax to service approximately 400,000 customers. Sprint previously created a WiMax network that is used for customers in Baltimore, which will be utilized by Clearwire for the merger as well as other areas included in Sprint’s reach.
As further outlined by the AP report, Sprint’s ownership of the new company will be 51 percent, while Clearwire’s stake will be 22 percent. Other investors in the company include Google Inc., Time Warner Cable Inc., Comcast Corp., and Bright House Networks.
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