What Now for Sprint?
Some analysts are already suggesting that Sprint could work a deal with Clearwire LLC (Nasdaq: CLWR) and then spin off the WiMax operations.
"We believe WiMax cannot be cancelled but a portion of the business should be IPO’d once a deal with Clearwire has been finalized," write analysts at UBS Research this morning.
I've already laid out why I consider WiMax one of the few competitive adavantages for Sprint over its larger rivals, AT&T Inc. (NYSE: T) and Verizon Wireless . (See Sprint & WiMax.)
It goes without saying that the Sprint news is probably not a helpful booster for the WiMax market in the U.S.
The larger question, however, is: Where does Sprint go from here if it spins or sells off assets that could potentially be profitable in the future?
I suspect if Sprint simply shakes down to the core then it will once again become a potential buy-out target -- at least in the short-term. 3G cellular, however, will not remain the dominant means of wireless communication 10 or 15 years down the road. So we have to ask: What comes next?
— Dan Jones, Site Editor, Unstrung