Clearwire CEO Bill Morrow has confirmed to Reuters that the internet service provider is in preliminary talks with T-Mobile USA to court the carrier as a possible investor after weeks of speculation and reports on the financial health of the venture.
The talks center on T-Mobile becoming an equity investor in the company, which would grant it access to Clearwire’s network at the same steeply discounted rates enjoyed by current investors in exchange for the capital investment it needs. In the event that the equity sale is not completed, T-Mobile could still be offered wholesale access, albeit at much higher rates.
Morrow also confirmed that the venture would need the additional investment on or by the end of 2011 in order to settle the matter and in the event both of the above fall through, other options being considered include taking on more debt or selling off currently unused spectrum holdings although the preference is for Sprint to purchase the remaining shares of the venture, which Sprint has previously stated it cannot complete.
