Sprint Nextel plans to spend $5 billion on WiMax
Reuters
Sprint Nextel said on Thursday it could spend as much as $5 billion by the end of 2010 on a new network based on the emerging high-speed wireless technology known as WiMax.
The No. 3 U.S. wireless service said it expects spending on the network through the end of 2008 to be at the low end of its previously announced estimates because of its agreement to connect its network with Clearwire, a small wireless service provider.
WiMax is a wireless technology that Sprint wants to use to blanket entire cities, enabling wireless Internet access on everything from cell phones and laptops to video game players and cameras.
The technology is expected to support Internet access at speeds up to five times faster than typical wireless networks, though it is still slower than wired broadband such as DSL.
Sprint said it expects to spend $2.5 billion on the network through the end of 2008 compared with its earlier estimate of $2.5 billion to $3 billion.
Sprint expects to reach a potential 100 million customers in that time, with the company providing coverage to 70 million people and Clearwire covering 30 million people.
Sprint, which will market the new service under the Xohm brand (pronounced "zoam"), said it expects coverage to expand to 125 million people by 2010 at an additional cost of $2.5 billion, bringing total network spending to $5 billion.
Sprint expectsbetween $2 billion and $2.5 billion in revenue from WiMax in fiscal year 2010.
Sprint also has an agreement to feature Google's Web search services via a portal tailored to WiMax devices.
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