Sprint agrees to pay Clearwire USD1 billion for 4G wholesale

21 Apr 2011

US telcos Sprint Nextel and Clearwire have announced an amendment to their long-standing wholesale pricing agreement, in relation to 4G (including WiMAX and wireless broadband) wholesale services. According to TeleGeography’s GlobalComms Database Clearwire has wholesale service agreements in place with all of its shareholders, most notably with Sprint, which allows the latter to purchase mobile broadband data services from Clearwire for resale to consumers. Under the terms of the new agreement, Sprint has agreed to pay Clearwire a minimum of USD1 billion during 2011 and 2012. The fee is broken down as follows: USD300 million in 2011, USD550 million in 2012 and an additional sum of USD175 million in ‘pre-payments’ covering 2011, 2012 and beyond. The agreement reportedly runs until November 2013.

Dan Hesse, CEO of Sprint, commented: ‘We are pleased to reach this wholesale pricing agreement with Clearwire. We look forward to working with them under this new agreement to provide an expanded offering of 4G capabilities and solutions for Sprint customers’. John Stanton, Clearwire’s interim CEO, added: ‘Sprint has been our biggest and most important customer and partner since we launched 4G services in the US more than two years ago. Today’s agreement further aligns Sprint and Clearwire’s interests and lays the foundation for a continued, constructive relationship. We are pleased to have the resources and partnerships necessary to maintain our 4G leadership and leverage our significant spectrum and capacity for delivering mobile broadband services’.

United States, Clearwire, Sprint Corporation (now part of T-Mobile US)