• MSNBC/AP, Wednesday, May 7, 2008 10:15 AM

Clearwire and Sprint Nextel are merging their wireless broadband units and will concentrate on rolling out a mobile network based on the emerging WiMAX standard. WiMAX promises faster download speeds than the latest networks run by cell-phone operators, and it's even seen as a potential competitor to fixed-line broadband. The new company is looking for a U.S. network deployment between 120 million and 140 million people by the end of 2010.

The $14.55 billion wireless communications company will be called Clearwire. It is getting a $3.2 billion investment from Intel, Google, Comcast, Time Warner Cable and Bright House Networks, giving the companies a 22% stake in the venture. It will also receive an investment from Trilogy Equity Partners.

Sprint and Clearwire had already announced their plans to build out networks using WiMAX technology, but had been looking for outside funding. Rivals such as AT&T and Verizon Wireless have eschewed WiMax, opting instead for upgrades to their current wireless broadband networks and a technology called Long Term Evolution.

Read the whole story at MSNBC/AP »