Sprint has said it is not set to buy-out the remainder of WiMAX network operator Clearwire, arguing that a transaction would be “too expensive” for the company. While Sprint owns 54 percent of Clearwire, it does not control its board, which the Wall Street Journal says means that Sprint does not have to carry the cost of the WiMAX network buildout on its books. However, following disagreements about strategy, Sprint has found that it is dependent on its affiliate’s network for growth, without having control of its wider activities. The expansion of Clearwire’s retail presence is believed to be a bone of contention, as Sprint would rather see the cash invested in the network. Robert Burst, Sprint's CEO, said that the company will look to increase its control over Clearwire in the future, but that this is “hard to do.”
Sprint suffered a run of poor financial results in recent years, which limits its ability to undertake large transactions – with shareholders also unlikely to be keen on risky moves. Clearwire is also likely to need additional cash in the near future, in order to continue its network construction, with reports earlier this month suggesting that T-Mobile USA may become an additional investor. Neither Clearwire nor Sprint have commented specifically on future funding plans, although Burst said that “the path that’s probably likely is that we’ll continue to infuse some equity over the coming years, and maybe some way down the road take control of it.”