The FCC gives their blessing to Sprint-Nextel and SoftBank

6 Jul

 

Japan-based SoftBank passesd the final federal hurdle this morning when the FCC (federal communication commission) gave their blessing to a deal that if approved by stockholders has the potential to shake up the cellular world. The deal could change the structure of the telecommunication as it will culminate in a union between three major players in two continents as the Japan-based company joins forces with both Sprint-Nextel and Clearwire

Sprint-Nextel and Clearwire have had a rocky relationship going back 6 years when the two companies first decided to try living together, in July of 2007, before parting way after just 6 months. The two companies re-united the following year where the much older Sprint-Nextel introduced Clearwire to Xohm. Clearwire like Xohn and the two soon merged together into what became Clear with Sprint-Nextel as their parent. Since the time of that merge Sprint-Nextel has been the single parent raising Clearwire.

In October of 2012 that all changed as SoftBank came into the picture when they approach Sprint-Nextel and offered to buy a majority stake in them. This was the start of a romance between the two company as they discussed what this union would entail. One of those detail was if SoftBank would adopt Clearwire making the two companies equal parents. SoftBank said they would do so. The two companies then took the next step and asked the FCC if this arrangement would be acceptable. Over the next 8 months the FCC looked into all the details of this union and finally said that they could go forward with their plans.

“After thorough review, the Commission has found that the proposed SoftBank-Sprint-Clearwire transactions would serve the public interest,” said acting FCC chairwoman Mignon Clyburn in a statement. “The increased investment in Sprint’s and Clearwire’s networks is likely to accelerate deployment of mobile broadband services and enhance competition in the mobile marketplace, promoting customer choice, innovation and lower prices.”

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