It has been reported that a deal for five-year wholesale has been signed between Clearwire Corp. and Leap Wireless International Inc.
The deal would offer customers a high-speed mobile broadband service with pay-as-you-go carrier scheme.
The deal has been signed by the Clearwire Corp. to improve its position as a as a wholesaler. Since 2011, Clearwire Corp. has been chasing the wholesale customers. The deal is now the last hope for the Clearwire. The Chief Executive of Clearwire, Erik Prusch, informed that Clearwire is in talks with AT&T Inc. and MetroPCS Communications Inc.
AT&T Inc. operates Verizon Wireless and Cricket brand respectively. The Cricket brand is the smallest U. S. carrier, which has a national reach.
Although Mr. Prusch has informed about the company being into talks with other carriers for the wholesale services, the details about the deal and the plans of the company has not been unveiled. Previously, the company had been planning to build a nationwide fourth-generation network. But, the poor financial conditions hindered the company from achieving its goals.
Following the announcement about the signing of the deal, the shares of the company surged by 2.1%. Through this deal, Leap is hoping of achieving its targets of providing LTE service. It has further been revealed that this year, Clearwire would be receiving $600 million payment from Sprint for the WiMax network.
Clearwire has been able to raise $1 billion in just past two or three months. However, it needs to raise more revenue so that the effective services could be provided to the customers. Mr. Prusch was reported as saying, "We've gotten into a good position to be able to fund this build. There are still many vehicles for us, if and when we need them".