Big investors join Clearwire's WiMax plan

NEW YORK -- WiMax has the potential to substantially raise the game of the U.S. wireless industry — and the USA by extension, says Sprint Nextel CEO Dan Hesse.

"It gives the United States an opportunity to be a leader in wireless broadband," Hesse says.

WiMax is akin to Wi-Fi in that it offers speedy, wireless Web surfing. But WiMax covers a much larger area. Sprint and Clearwire plan to blanket the USA with WiMax, turning the nation into one big hot spot.

Hesse says the "unique mix of names" makes this wireless company different from any other: "Be it a brand, customer relationships, distribution or applications — all of these (investors) bring resources to the table on top of money, and that's what makes this different."

Google is investing $500 million; Intel, $1 billion. Comcast is investing $1.05 billion; Time Warner Cable, $550 million. Bright House Networks and Trilogy Equity Partners, headed by wireless pioneer John Stanton, are contributing $100 million and $10 million, respectively.

The deal is expected to close in the fourth quarter, subject to approval by Clearwire shareholders and regulators. The WiMax network is expected to reach about half the U.S. population by the end of 2010.

Sprint will own about 51% of the new company. Existing Clearwire shareholders will own about 27%.

Sprint has tried to partner with cable TV operators before and failed. Hesse says this is different.

"This is not a partnership," he says. "It's a stand-alone public company with a focus on its own customers."