Sprint faces 4G dilemma as Clearwire needs funding for expansion

sprintSprint, which teamed up with Clearwire to become the only 4G network in the US at present, is apparently in a dilemma - Clearwire requires funds worth billion of dollars to complete the development of the high-speed 4G network across the country, and the company’s 54 percent owner, Sprint, has now decide how to fund the project.

Though Sprint is currently the leader in terms of offering speedy Web surfing and video-streaming capability to smartphones and other devices, via the 4G network, it won’t be long before rival carriers, like Verizon and AT&T, catch up.

To retain its lead in the 4G services arena, Sprint needs Clearwire to expand from its present base of 49 cities to the entire country – a project for which Clearwire requires billion of dollars in funding. 

Given the fact that Sprint is banking heavily on its ability to offer faster data services to mobile devices over 4G network, the carrier has now to decide whether to fund Clearwire’s expansion project itself or to look for a competitor for financial assistance.

According to the information shared by one ‘inside’ sources familiar with the proceedings, some Sprint directors are of the opinion that T-Mobile USA - a unit of Germany’s Deutsche Telekom AG – should be allowed to make a sizable investment in Clearwire.

Another source added that Sprint directors “always talk about Clearwire,” and “are considering alternatives and would consider T-Mobile if they came forward.”