Sprint Nextel Dumps Clearwire, Shares Down 26%
Sprint (NYSE:S) has announced that it will be discontinuing all devices supported by their Clearwire (NASDAQ:CLWR) network in anticipation of their own 4G network. Clearwire shares have plummeted as a result, falling over 25% this morning.
Currently Clearwire (NASDAQ:CLWR) supports Sprint’s entire 4G data network, however Sprint is already underway with the development of an independent 4G network that will replace the need for the subsidiary provider. While Sprint does not own Clearwire, it is the majority holder. Thus, the network change has Clearwater investors worried that the company may not be able to bounce back.
According to Sprint’s (NYSE:S) president Steve Elfman, the company has already begun building its own 4G network and will begin its use next summer. The news may make new Apple (NASDAQ:AAPL) iPhone customers nervous after horror stories about AT&T’s (NYSE:T) crappy 4G service.
Following is some stock price performance information of these companies:
- Sprint (NYSE:S): The shares recently traded at $2.83, down $0.18, or 5.98%, on the day. The shares have traded in a 52-week range of $2.25 to $6.45 and its market capitalization is $8.50 billion. About the company: Sprint Nextel Corporation offers a range of wireless and wireline communications services to consumer, business, and government customers. The Company develops, engineers, and deploys various technologies, including two wireless networks offering mobile data services, instant national and international push-to-talk capabilities, and a global Tier 1 Internet backbone.
- Clearwire (NASDAQ:CLWR): The shares recently traded at $1.51, down $0.55, or 26.83%, on the day. The shares have traded in a 52-week range of $1.32 to $7.51 and its market capitalization is $1.38 billion. About the company: Clearwire Corporation provides wireless broadband services. The Company operates a wireless network in the United States as well as other countries.
(Note: Selected financial data are sourced from Google Finance. All data are assumed to be accurate.)