U.S. operator Sprint Nextel is considering spinning off its planned WiMAX network, with the operator potentially repurchasing mobile services from the new entity on as as-needed basis. Acting Chief Executive Paul Saleh told an investor conference in New York that plans for the unit may take “various forms.” Saleh commented that a spinoff is “one of many” proposals currently being considered for the network. Analysts believe such a move would enable Sprint to raise capital for the venture and focus more closely on its mainstream mobile operations. During the announcement, Saleh reaffirmed Sprint’s commitment to WiMAX and said the operator will provide details on its WiMAX plans early next year.
The consideration follows the recent departure of CEO Gary Forsee and the end of Sprint’s WiMAX partnership with Clearwire. The two companies initially planned to jointly develop a U.S.-wide WiMAX network but the idea was abandoned last month. Sprint is under increasing pressure from its shareholders to find partners for its US$5 billion WiMAX project in light of its recent financial results – in Q3 2007 the operator lost 60,000 mobile customers.