http://www.wirelessweek.com/News/2011/08/Carriers-Shares-37percent-Buyout-Rumors-Clearwire-Sprint/?et_cid=1970114&et_rid=259458880&linkid=http%3a%2f%2fwww.wirelessweek.com%2fNews%2f2011%2f08%2fCarriers-Shares-37percent-Buyout-Rumors-Clearwire-Sprint%2f

Sprint may want to buy Clearwire. Sounds like an idea to me. Should anyone be surprised? No.

These rumors have been running around since the day Sprint acquired an interest in Clearwire. So it is old news and old rumors.

The real questions are: Should Sprint buy Clearwire? Is there any value in buying Clearwire? Should Sprint merge with Comcast?

Let me answer the first question. The answer is Yes.

Let me answer the second question. The answer is Yes.

Let me answer the third question. The answer is Yes.

The first two questions are no-brainers. The value in Clearwire lies in its spectrum(in the 2.5 GHz band) and the network deployed to date. Does Clearwire have a lot of customers? Well, it has a little over 4 Million subscribers. It is not in the same league as a Sprint but Sprint can use the additional subscribers on its network.

Sprint should be able to buy Clearwire at a fair price for Sprint shareholders. The question now is whether Sprint wants to do this in cash or stock. Sprint needs cash to build out its network. Besides, having cash in the coffers helps the company’s bottom line.

There are other shareholders in Clearwire today. The question is whether or not Sprint can buy out the other shareholders. Then again a complete buyout may not even be necessary. The other shareholders might be able to strike up a network usage agreement with Sprint that could be part of a share purchase agreement.

The third question requires more work. Comcast has content and a network. Sprint has a network. The question now is does Sprint acquire Comcast or Comcast acquire Sprint or do they merge as equals? Truthfully if a merger occurred the real challenge is who will run the merged entity. The “control” issue is a major issue and potential show stopper. However, I believe that Comcast and Sprint should merge. A combined entity will change the competitive landscape for the entire telecom/media industry. Now, the competitive fight will be on Sprint’s and Comcast’s terms.  It would change the entire carrier business battlefield.