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Bell Canada partners with McCaw’s Clearwire, invests $100M

Canadian telecommunications provider Bell Canada reported an alliance with Craig McCaw’s U.S.-based wireless broadband network operation Clearwire Corp. The alliance includes a $100 million investment, as well as a further investment in McCaw’s NR Communications operations that currently provides wireless broadband services in parts of Canada.

The alliance calls for Bell Canada to be Clearwire’s exclusive strategic partner for Voice over Internet Protocol and certain other value-added IP services and applications in the United States. Bell Canada also will become Clearwire’s preferred provider of IP-based services and applications in markets beyond North America.

As part of the alliance, Bell Canada said it will invest $100 million in Clearwire with Bell Canada Chief Executive Officer Michael Sabia joining Clearwire’s board of directors.

“Wireless broadband will be an increasingly important access technology in the next generation of telecommunications,” Sabia said. “In Craig McCaw and his Clearwire team, we are partnering with an innovator who has a proven track record for delivering wireless initiatives and is today a clear leader in wireless broadband. This alliance is a good opportunity for Bell Canada to develop our wireless broadband capabilities for our home market and leverage our VoIP expertise.”

Clearwire currently offers non line-of-sight wireless broadband data services using technology provided by its NexNet subsidiary in Jacksonville and Daytona Beach, Fla.; Abilene, Texas; and St. Cloud, Minn. Clearwire plans to expand the offering to additional markets across the United States later this year, as well as into parts of Europe.

McCaw announced a deal last fall with Intel Corp. to use Intel’s WiMAX solution for future deployments once the technology becomes available.

Bell Canada also said it will become a shareholder in McCaw’s NR Communications, which has partnered with Canadian telecommunications provider Microcell Telecommunications Inc. in a joint venture providing wireless broadband services using NexNet technology in the 2.5 GHz spectrum bands as part of the Inukshuk joint venture. Microcell was recently acquired by fellow Canadian operator Rogers Wireless Inc., which also has expressed an interest in working with McCaw on developing wireless broadband solutions for the Canadian market.

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