Tallahassee, FL 10/26/11 (PennyPayDay) --Clearwire Corp (NASDAQ: CLWR), the money-losing wireless broadband provider, surges 20 percent after Sprint CEO Dan Hesse disclosed a tentative deal between the two companies that appears to show a strengthened relationship between them. In particular, Sprint said it has agreed to work closely with Clearwire on its planned LTE network roll out.While Sprint owns a majority stake in Clearwire, there has been tension between the two companies in recent months, and it was not clear whether Clearwire was going to figure into Sprint’s long-term network strategy. Sprint may use Clearwire’s network to handle traffic from customers using Long-Term Evolution, or LTE, technology beginning in 2013, Hesse explained. The talks are continuing, though a deal isn’t completed.
“We’re pleased to announce that we have signed a nonbinding cooperation agreement with Clearwire, to work together on the technical specifications of the Clearwire LTE network and to ensure a superb customer experience for Sprint customers on the Clearwire LTE network,” Hesse said on a post-earnings report call with investors this morning. “The cooperation extends to the design and operations of the network, and ensure seamless hand-off and service layer control that needs Sprint customer experience requirements.”
He said the deal covers the selection and timing of site nodes and involves working with manufacturers to design devices and certain chip sets for devices.
Clearwire, based in Kirkland, Washington, rose as high as $2.11 after its news release today, and is currently trading +20% at $1.99. The stock had lost 68% this year before today.
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