US wireless carrier Sprint has announced it will acquire the remaining shares of 4G broadband carrier Clearwire that it does not already own for a 128 percent market premium. The deal gives Sprint 100 percent ownership of the fledgling 4G provider and access to its 11 million customers and coverage footprint of 130 million people in the US. Clearwire is a parent company that operates wholesale 2.5GHz 4G networks under brands such as Sprint, Clear, Jolt, and Cricket Wireless.
Down with the #1 and #2
This is welcome news for Sprint customers which will beef up the company’s spectrum and assist with the expansion of their 4G LTE network. Clearwire about wireless broadband coverage in 80 American cities as well as 35 of the top 40 markets. By comparison, Verizon 4G LTE covers 440 cities and 250 million people while AT&T has coverage of 150 million people in 103 markets. Any deal that puts the heat on number one and number two is a win in my book.
With T-Mobile expanding its 4G coverage paving the way for an iPhone in 2013 and now Sprint boosting its spectrum, it’s nothing but good news for consumers as competition will put downward pressure on exorbitant data pricing.