It was not so much the technology but the deal just couldn't be consummated.
Proponents of the WiMAX wireless broadband technology have suffered a setback after a major US deal using the technology was scuppered at the weekend. The construction of a WiMAX network across the US will not now go ahead because Sprint Nextel and Clearwire were not able to resolve "complex issues". The failure is a blow for the technology's advocates - including the likes of Unwired and Austar - because Sprint was expected to be the major driver worldwide of WiMAX, investing billions of dollars in a network. But the failed deal means the prospects of a huge wad of cash pouring into the development of WiMAX - and related technologies and devices such as handsets - has been severely dented. This, at the same time as the Federal Government gives an Optus-led consortium almost $1 billion to introduce a broadband network in rural Australia that will use WiMAX in those spots where it cannot use second-generation ADSL technology. Meanwhile, the Seven Network's $167 million takeover bid for Unwired has hit the home straight after the free-to-air TV broadcaster increased its stake to more than 50 per cent. The offer for Unwired, the owner of the WiMAX spectrum in the cities, closes on Friday.
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