Oppenheimer Discusses Sprint, Clearwire Relationship (S)

Oppenheimer & Co. is out with a research report on Sprint Nextel S and its relationship with Clearwire CLWR.

In a note to investors, Oppenheimer writes, "At an investor conference, Sprint CEO Dan Hesse noted the company plans to continue its relationship with its Clearwire (CLWR, $5.38, Not Rated) venture into the future, but the relationship will depend on other strategy decisions Sprint makes. Per Mr. Hesse, Sprint will continue to use WiMax and have a relationship with Clearwire going forward. However, he asserted that it remains unclear whether the involvement with Clearwire would be on "a sliding scale." Sprint remains committed to making an announcement about its 4G strategy by mid-year, and we believe these public statements are part of the posturing between Sprint and Clearwire as they both seek to define the companies' relationship. Mr. Hesse mentioned the possibility of a network-sharing agreement with CLWR. There are multiple options on the table, in our view, including Sprint going at it alone on a 4G buildout, a joint build or outright merger with T-Mobile, and Sprint could also implement a network-sharing agreement with LightSquared."

Shares of Sprint closed at $4.70 yesterday.