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Sprint mulls WiMAX spin-off again?
Sprint is once again mulling a spin-off of its WiMAX unit, Xohm, according to a report in the Wall Street Journal, that may include a merger with Clearwire. According to the report, at an upcoming retreat, Sprint board members will discuss plans to find a new CEO now that Gary Forsee has stepped down and also discuss whether to spin-off the WiMAX unit. The WSJ pegs Dan Hesse, the current CEO of Embarq as the front runner to succeed Forsee. Acting CEO Paul Saleh claims that Sprint remains committed to WiMAX, despite the reports.
Sprint inked a tentative deal with Clearwire to pool their resources and build out a nationwide WiMAX network, so a spin-off and merger with Clearwire does not seem completely out of the cards for Xohm.
For more on the rumors:
- read this article from the WSJ
Related Articles:
June: Sprint may spin off WiMAX spin-off Article
Clearwire and Sprint pool WiMAX networks Article
ABI: Sprint/Clearwire collaboration good for consumer electronics Article
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Comments
Posted by Berkeley DMEC | November 3, 2007 - 12:02pm
With investors unhappy about Sprint’s subscriber churn and revenue growth have already expressed concerns about the $5 billion WiMax investment. So to make the life of new CEO easier Sprint may decide to spinoff XOHM (Sprint’s WiMax brand) before the transition. The candidate CEOs may even ask for this so they can focus on the mobile subscriber growth issue.
Read more at http://berkeleydmec.org
