Clearwire, Sprint Up; Comcast Off on Possible WiMax Deal

3/26 - "The Wall Street Journal is reporting that cable operators Comcast (CMCSA), Time Warner (TWX) and Bright House Networks, as well as Intel (INTC) and Google (GOOG), all are in talks about funding a nationwide WiMax-based wireless broadband network that would be operated by Sprint Nextel (S) and Clearwire (CLWR)."

"Craig Moffett, an analyst with Bernstein Research, writes this morning that “a Wi-Max joint venture, should a deal be consummated, would scratch many itches for everyone involved.” He says the big winner would be Sprint, “for whom a deal would reduce capital intensity while still allowing the company to develop its 4G Xohm offering.” He says “the reduced spending would significantly improve Sprint’s free cash flow prospects, and would remove a significant overhand on the stock.” Clearwire, he says, would similarly benefit."

"Moffett says the implications are “murkier” for the cable companies. He notes that Comcast holders “have become increasingly adamant about the immediate return of free cash flow and the attendant minimization of capital spending.”