Sprint to Spend $5 Billion on WiMax

By Ed Oswald, BetaNews

August 16, 2007, 12:39 PM

Sprint reiterated on Thursday its plans to spend $2.5 billion through the end of next year on WiMax, claiming that it will spend an additional $2.5 billion on the technology through 2010.

The company says it has gotten several manufacturers to commit to putting 50 million WIMax devices in consumer's hands through the end of the decade. Sprint had already partnered with Nokia, Samsung, and Motorola on WiMax devices, but this appears to be more extensive.

Sprint says that it will run about 70 percent of the network, leaving the other 30 percent to be covered by its recently announced partner Clearwire. The initial network will cover about 100 million, however Sprint plans to cover an additional 25 million by 2010.

The success of WiMax will very much determine Sprint's future plans for expansion. By the beginning of the next decade, the initiative should begin to generate what is called positive cash flow, where operating income exceeds operating expenses.

Sprint's guidance on its WiMax plans came as part of its Technology Summit event, where it shows off its technological enhancements to analysts and investors.

"We've executed the technology plan we laid out when we merged two years ago, and, in doing so, we have advanced our vision of becoming the mobility services leader," Sprint Chairman and CEO Gary Forsee said.