Sprint Nextel (NYSE: S) and Clearwire (NASDAQ: CLWR) plan to jointly construct the first nationwide mobile broadband network using WiMAX technology, and promote the global development of WiMAX-based services. The planned arrangement, which is set out in a letter of intent, is expected to provide broad benefits to consumers, businesses, educators, the Federal government and public safety users by fostering quicker, broader and more efficient deployment of a mobile WiMAX broadband network than either company could accomplish on its own.

The WiMAX network is being designed to deliver mobile broadband services in urban, suburban and rural markets, and enable significantly greater depth and breadth of services. The arrangement also is expected to enable each company to increase capital efficiency and reduce overall network development and operating costs.

Sprint Nextel and Clearwire expect to build their respective portions of the nationwide network, and enable roaming between the respective territories. The companies also will work jointly on product and service evolution, shared infrastructure, branding, marketing and distribution. Additionally, the companies intend to exchange selected 2.5 GHz spectrum in order to optimize build-out, development and operation of the network.

The arrangement is subject to the execution of definitive agreements, which are expected to be finalized within the next 60 days. It is also subject to review by the Department of Justice, and approval of spectrum license assignments and transfers by the Federal Communications Commission.