Intel, Motorola Invest $900 Million into WiMAX Provider

Intel Capital Invests Millions into Clearwire

by Anton Shilov
07/07/2006 | 11:07 AM

Intel Capital and Motorola will invest $900 million in total into Clearware Corp., who is the leading provider of wireless Internet in the U.S. The investments are meant to help the company to deploy the WiMAX networks, which will eventually allow Intel and Motorola to sell more devices that support the WiMAX technology.

The series of transactions is to accelerate the development and deployment of portable and mobile WiMAX networks based on the IEEE 802.16e-2005 standard. The transactions include Intel Capital’s investment of $600 million as part of a $900 million private financing round and Motorola’s acquisition of Clearwire’s subsidiary NextNet Wireless, a leading provider of OFDM-based non-line-of-sight (NLOS) wireless broadband infrastructure equipment. Motorola Ventures is also participating in the financing round.

Following closing of the transactions, Motorola will supply wireless broadband equipment for Clearwire’s existing and future networks globally. To hasten the proliferation of mobile WiMAX in PC clients, Intel will work to enable the inclusion of WiMAX chipsets in next generation mobile computing platforms, the company indicated. All three parties will contribute significant research and development resources to evolve NextNet Wireless’ pre-WiMAX technologies.

“The size of this investment from Intel Capital underscores our commitment to supporting wireless broadband using WiMAX networks in the United States,” said Intel Capital President Arvind Sodhani. “Our collaboration with Clearwire and Motorola builds on the foundation of previous WiMAX network deployment investments made by Intel Capital throughout the world to bring the benefits of mobile high-speed and content-rich Internet access to wireless broadband users.”

“Collaborating with Intel and Motorola significantly advances our vision for fixed, portable and mobile wireless broadband services,” said Craig McCaw, founder, chairman, and co-CEO of Clearwire. “Wireless broadband networks will enable the creation and delivery of differentiated services and applications that enhance the way people communicate and experience the Internet.”

Closing of the transactions is subject to regulatory approval and certain closing conditions.