Sprint-Clearwire deal could give Google what it’s always wanted
Posted by: admin in Stocks NewsFiled under: Google (GOOG), Sprint Nextel Corp (S)
As Tom mentioned earlier, Sprint Nextel Corp. (NYSE: S) is merging its next-generation wireless assets with Clearwire Corp. (NASDAQ: CLWR) to form a new joint partnership that — finally — will create a high-speed wireless world wide web network that covers most of the U.S. Even though Sprint’s Xohm service has been decried by investors as a “non-core” asset weighing down Sprint’s pocketbook, it still has enormous potential in the near future. Sprint’s not in terribly good shape — but it does have vision. Of course, vision and execution are two different things.
So, it is amusing to think that if the new Sprint-Clearwire venture can build out is national presence successfully and capture customers exhausted of limited high-speed world wide web service, the world will be its oyster. Of course, other companies are contributing to the venture as well, including Google, Inc. (NASDAQ: GOOG). Why would Google want to put money into this? Because this could be Google’s most important investment ever.
Bypassing the telephone and cable companies that have a stranglehold on most of the high-speed internet business in the U.S. has long been the dream of Google. It doesn’t want a middleman in the way of it connecting consumers and businesses with the information they seek. Even though Google wasn’t successful in the current FCC radio auctions (maybe by design), finding a way to provide internet service directly to its customer base would give Google on a much more powerful perch than it has even this day. Google could even buy the new Clearwire partnership outright once it’s established.
I think they’re starting to get giddy in the Google board room.
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