Sprint Nextel and Clearwire Resume WiMax Talks

According to numerous reports, major wireless phone carrier Sprint Nextel and Clearwire have resumed talks that have stalled last year.

Clearwire Corp. is a wireless Internet provider that is in negotiation with Sprint in an effort to combine their high-speed wireless WiMax networks. The company currently operates pre-WiMax networks in 46 U.S. markets, including Seattle, Syracuse, N.Y., and Duluth, Minn. Wimax networks have the capacity to grant faster wireless Web connection speeds for laptops and cell phones.

Last November, talks about combining the high-speed wireless WiMax networks of both companies have bogged down. As a result of this failure, the shares of the much smaller Clearwire went down to more than 40 percent.

Sprint Nextel may have also been affected by this event as there has been reports that the wireless network may be planning huge lay-off. Some estimated that the major wireless network will give up thousands of employees and make drastic changes within the company. However, other factors may have played a greater role in Sprint's decline.

Fortunately, reports have indicated that these ailing companies have crafted a new plan. Some say that it involves spinning off Sprint's WiMax unit and merging it with Clearwire networks. This venture seems to have caught the attention of Intel Corp. which may be a good source of funds to help seal the deal.

It also appears that the negotiations between the two companies have brought good results. Fro instance, Clearwire shares have skyrocketed and the stock of Sprint Nextel have increased in value. I hope that the talks between these companies will succeed. After all, we can all benefit from the faster online connection that Wimax networks can offer.