Sprint Nextel and Clearwire on Wednesday announced a $14.5 billion initiative to combine their wireless broadband businesses and mold a new wireless communications company.

Named Clearwire, the new company will focus on expediting deployment of the first nationwide WiMAX network to supply widespread mobile broadband.

WiMAX (Worldwide Interoperability for Microwave Access) is designed to supply wireless connections by faraway distances and is faster than today’s 3G networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile World Wide Web devices and consumer electronics equipment, WiMAX is expected to allow users to wirelessly access a range of multimedia applications such as live videoconferencing, recorded video, games, large info files, and more — anywhere in the network coverage area.

Sprint and Clearwire plus announced that Intel, Google, Comcast, instance Warner Cable, and Bright House Networks have agreed to invest $3.2 billion into the new Clearwire.

Sprint will have the largest stake in the new company at 51 percent. Current Clearwire shareholders will own approximately 27

percent, and the investors will have approximately 22 percent as a group.

The ability of the Mobile World Wide Web

The new Clearwire expects to offer mobile wireless World Wide Web services on new devices that integrate WiMAX chipsets and an open architecture.

“We’ve made an excellent start developing XOHM WiMAX services. Contributing those advances to a strongly backed new company — in which we’ll hold the largest interest — provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business,” said Dan Hesse, president and CEO of Sprint.

Hesse said the agreements allow the new company and its investors to bundle and resell Sprint’s third-generation wireless services, strengthening distribution while reducing complexity and enhancing cable relationships.

Enviable Support

The new Clearwire has enviable support from its partners. Google will work with the new company on an open World Wide Web business protocol for mobile…

Orginal post by Top Tech News