Sprint and Clearwire Fight Over Smartphone Finances
Sprint has filed legal paperwork against its WiMax network partner Clearwire in an attempt to resolve differences in how the companies believe one another should be billed. Clearwire says that about 810,000 EVO 4G and Epic 4G smartphone customers use their devices outside of Clearwire's WiMax coverage areas. Clearwire believes that, despite those devices' inability to access and use WiMax, Sprint still needs to pay Clearwire a monthly access fee. Sprint disagrees. In its most recent quarterly report, Clearwire states, "We have been engaged in ongoing negotiations with Sprint to resolve issues related to wholesale pricing for Sprint 4G smartphone usage under our commercial agreements with Sprint. On October 29, 2010, we received a notice from Sprint initiating an arbitration process to resolve these issues. If we are unable to reach a satisfactory resolution of these issues, we end up agreeing to an amount less than what we expected, or the arbitration process is not resolved in our favor, we could end up receiving substantially less in future wholesale revenues than we expect or for which we have planned. Such an outcome could require us to revise our current business plans and projections and could also adversely affect our results of operations."
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