Sprint: 4G & M&A Still Unclear

At last we finally have a clear picture of where Sprint Nextel Corp. (NYSE: S - message board) stands with WiMax. (See Sprint, Clearwire Create $14.5B WiMax Giant.) But what the service provider plans to do with its own cellular network and its own M&A strategy going forward remains unclear. The issue at hand is that Sprint now has 50 million subscribers set to potentially migrate to WiMax services. But the company will only have 51 percent ownership over any customer that makes that migration, as opposed to a 100 percent ownership that it would have over a customer on any 4G network it potentially built on its own.

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