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Sprint To Pay $1 Billion To Clearwire For 4G Deal

Sprint has agreed to pay a minimum of $1 billion for accessing Clearwire’s 4G network over the course of the next two years.

Under the deal, Sprint will be required to pay Clearwire, a wholesale 4G network provider, $300 million in 2011 for using its network. Sprint will also be required to pay $550 million in 2012 and $175 million in pre-payments for wholesale access to Clearwire’s 4G offering.

Sprint plans to offer an increased bandwidth to its 4G customers for web browsing and video streaming services. The deal will allow Sprint to continue building its 4G enabled Smartphone portfolio, which already includes the HTC Evo 4G and the Samsung Epic 4G.

"Sprint has been our biggest and most important customer and partner since we launched 4G services in the U.S. more than two years ago," said John Stanton, Clearwire's interim CEO.

"Today's agreement further aligns Sprint and Clearwire's interests and lays the foundation for a continued, constructive relationship. We are pleased to have the resources and partnerships necessary to maintain our 4G leadership and leverage our significant spectrum and capacity for delivering mobile broadband services" he added.

The two companies will also be taking their partnership beyond 2012, to expand and improve Sprint’s existing network.