Unanimous vote approves Sprint-Clearwire spectrum merger deal

Dan Jones, Mobile Editor

November 4, 2008

1 Min Read
FCC Approves Sprint-Clearwire Deal

The Federal Communications Commission (FCC) has just approved the Sprint Corp. (NYSE: S)-Clearwire LLC (Nasdaq: CLWR) 2.5 GHz spectrum merger deal, removing one of the last obstacles to the creation of a new nationwide mobile WiMax carrier in the U.S.

The FCC Commissioners voted unanimously to approve Sprint's transferral of its broadband spectrum assets to the "new" Clearwire. The vote brushes aside the concerns of AT&T Inc. (NYSE: T), which had asked the government body to block the merger. The operator contended that if the FCC were to include Sprint and Clearwire's non-operational spectrum, then its proposed merger would be subject to more scrutiny, and so the application should be denied.(See Clearwire: We're Still on Track and AT&T Looks to Block Sprint/Clearwire Merger.)

Speaking at the FCC public meeting in Washington this afternoon, FCC Chairman Kevin Martin lauded the open access and device agreements from Sprint and Clearwire and suggested they could help to break down the "walled garden" offerings of cellular operators in the U.S.

"I think that’s going to continue to push others to open up their networks," he told the audience and listeners on a Webcast. [Ed. note: But only subjecting that audience to hours of elevator music.]

The vote removes one of the last obstacles to the creation of the "new" Clearwire, which will receive $3.2 billion in funding from Intel Corp. (Nasdaq: INTC) and others when the deal closes. (See Sprint, Clearwire Create $14.5B WiMax Giant.)

The last major hurdle for Clearwire is a shareholder vote on November 22. Some industry analysts expect that the new carrier could be created on December 1 or New Year's day, 2009, if the shareholders vote 'yes.' (See Clearwire's Closing Approaches.)— Dan Jones, Site Editor, Unstrung

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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