Clearwire WiMAX Will Need $2B More
While the Clearwire WiMAX network is on track, Sprint CEO Dan Hesse told investors at a Goldman Sachs conference in NYC yesterday that the effort will need an infusion of $2B more for completion.
Clearwire is already set to gain an infusion of $3.2B from the strategic investors ��� cable companies, Google and Intel ��� at the transaction close. The deal, which includes a merger of all Clearwire and Xohm broadband assets, is valued at $14.5B.
And Hesse isn't worried about finding the dough.
"Over time... not immediately not near term... we will need to raise about $2 billion in additional capital.." said Hesse, first noting it could come from market investments but if not "look at who the investors are who are in.. I'm not speaking for them.. but there is an 'A' list [of investors]... so there is a lot of confidence," said Hesse.
The "A" list includes Intel, Google, Comcast, Time Warner Cable and Bright House Networks.
Hesse is also confident that regulatory review will complete in time to have the deal solidified by year's end.
The Clearwire WiMAX network could provide service for up to 140 million people in the U.S. by 2010.