Clearwire Corp (CLWR.O) has chosen Ericsson (ERICb.ST) to take over management of its high-speed wireless network to help it cut costs, the service provider said on Wednesday. The seven-year agreement is similar to an arrangement which Clearwire's majority owner Sprint Nextel (S.N) has with Ericsson, causing some analysts to suggest that it might lead to a closer tie between Sprint and Clearwire. Under the deal, Clearwire said it will transfer 700 of its 3,600 employees to Ericsson, but will continue to own the network. Clearwire said the agreement will help cut costs, but the company would not disclose details on the financial impact or the terms.
Clearwire Corporation (Clearwire) is a provider of fourth generation (4G) wireless broadband services. Shares of CLWR traded higher by 4.24% or $0.181/share to $4.451. In the past year, the shares have traded as low as $3.97 and as high as $8.82. On average, 5439950 shares of CLWR exchange hands on a given day and today's volume is recorded at 7543719.
Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S traded higher by 1.37% or $0.07/share to $5.18. In the past year, the shares have traded as low as $3.70 and as high as $5.37. On average, 59720600 shares of S exchange hands on a given day and today's volume is recorded at 9979624.
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