FCC green lights wireless deals
Federal regulators are giving Sprint Nextel Corp. the green light to spin off and merge its new WiMax wireless broadband network with that of Clearwire Corp.
In a 5-0 vote Tuesday, the Federal Communications Commission approved a plan to combine Sprint’s (S, Fortune 500) Xohm network with Clearwire’s (CLWR) WiMax-like network. Google Inc. (GOOG, Fortune 500), Intel Corp. (INTC, Fortune 500) and a group of cable companies are investing billions into the $14.6 billion venture, which will carry Clearwire’s name.
The Justice Department has already indicated that it will allow the deal to proceed, but will continue to monitor it.
Federal regulators also signed off on Verizon Wireless’ planned $28 billion purchase of Alltel Corp. The deal will create the nation’s largest wireless carrier pay day loan lenders.
With partial dissents by the two Democrats on the five-member panel, the FCC decided to allow Verizon Wireless to move ahead with the deal for Alltel. Verizon is paying $5.9 billion and assuming $22.2 billion of Alltel’s debt.
The FCC is attaching several conditions to the deal, including a requirement that Verizon Wireless honor Alltel’s existing roaming agreements for four years.
The Justice Department approved the deal last week after Verizon agreed to sell assets in 22 states.
Verizon Wireless is a joint venture between Verizon (VZ, Fortune 500) and Vodafone Group PLC (VOD).