Wireless operator Clearwire's shares up

Shares in Clearwire jumped 30% amid reports that the company's existing shareholders, which include Sprint Nextel and leading cable television companies, are considering a new round of investment or a buy-out of the cash-strapped US wireless broadband data network operator, according to FT.com.

The discussions are believed to be focused on raising sufficient new funds to enable struggling Clearwire to continue the roll-out of its 4G wireless network and make the switch from WiMax technology to a rival 4G technology called LTE favoured by most mobile network operators.

According to Kansas City Star, Clearwire provides the high-speed WiMax network on which Sprint's 4G services run. It has said it needs between $750 million and $900 million to maintain its existing WiMax network and to build a second network in the same markets to provide the alternate long-term evolution, or LTE, technology. It would offer both services to wireless carriers.

While the AT&T/T-Mobile USA deal could be approved by the end of the first quarter of next year, it is likely Sprint will want to get the Clearwire situation resolved before 7 October, when it is due to announce a major network upgrade, writes Reuters.

All the cable partners in the Clearwire venture, Comcast, Time Warner Cable and Bright House Networks LLC, were involved in the talks, according to the people. Clearwire, Sprint and the cable companies declined comment for the story.

Sprint, the number three US mobile service, has been speaking out against AT&T's $39 billion plan to buy T-Mobile USA, a Deutsche Telekom AG unit, and has urged regulators to stop the deal because it would hurt competition.