WSJ: Comcast, Time Warner May Fund Sprint WiMax Network

Authored by Mark Hefflinger on March 26, 2008 - 9:01am.

Reston, Va. - Needing at least $3 billion to roll out its nationwide high speed WiMax network, Sprint Nextel (NYSE: S) and partner Clearwire are now in talks with cable giant Comcast (NASD: CMCSA) and Time Warner Cable (NYSE: TWC), The Wall Street Journal reported on Wednesday.

The paper, citing people familiar with the talks, said that a plan being discussed would have Comcast invest as much as $1 billion and Time Warner Cable $500 million in a new WiMax joint venture, which Sprint Nextel and Clearwire would operate.

Another cable operator, Bright House Networks, also could contribute up to $200 million under the plan, with Intel (NASD: INTC) and Google (NASD: GOOG) potentially also investing.

Sprint Nextel already has launched a test of its network, called Xohm, in DC, Baltimore and Chicago.

The network will provide wireless Internet access at speeds comparable to wireline broadband services.