Sprint and Clearwire Nix WiMax Partnership

Given the shaky state of the WiMax unit of Sprint, the termination of its joint agreement with Clearwire to bring WiMax coverage to 100 million people comes as something of a surprise. The WSJ's reporting that the "complexities of the transaction" and booting of Sprint's CEO made it too hard for the pair to come to a final agreement.

While Sprint's not in dandy shape, this is a bigger blow to Clearwire, the smaller of the two companies, which might need a hot cash injection from WiMax-backers like Intel to stay on track. Sprint "has given no indication that it will halt its WiMax plans altogether," but it seems more than likely we'll see some significant alterations of their plans along the lines of cost-cutting, given that money's not growing on cellphone towers for them right now, and $5 billion's a hefty bill to foot to go it totally alone on an unproven venture. [WSJ]