Sprint, Clearwire to build national Wi-Max network

NEW YORK -- WiMax is akin to Wi-Fi in that it offers speedy surfing. But WiMax covers a much larger area. Sprint and its partners plan to blanket the USA with WiMax, turning the core of North America into one, big hot spot.

WiMax is one of several technologies vying to be the next way to connect to the Internet on the go. A WiMax transmitter, typically located on a cellphone tower, can provide a relatively fast Internet connection over more than a square mile.

Sprint and Clearwire will contribute WiMax spectrum, the others cash. Comcast will contribute $1.05 billion; Intel, $1 billion; Time Warner Cable, $550 million; Google, $500 million. Two other investors, Bright House Networks and Trilogy Equity Partners, will contribute $100 million and $10 million, respectively, people with direct knowledge of the situation said.

The advent of a nationwide WiMax network is sure to rattle the status quo in the U.S. wireless industry, now dominated by AT&T and Verizon Wireless. According to people with direct knowledge of the plans, "open access" — meaning you can use any compatible device — will be a bedrock of the new network. Likewise, all Web applications — from e-mail to video streaming and gaming — also will be supported.

As envisioned by the companies, WiMax construction will be fast. By 2010, the group hopes to have WiMax services available to about half the U.S. population.

For Sprint, which has struggled with customer losses, the deal underscores its commitment to WiMax. CEO Dan Hesse spearheaded the effort for this industrywide collaboration.