Sprint to Become Wireless Company of Choice?

The likes of Research in Motion (RIMM), Apple (AAPL) and Nokia (NOK) are going to prefer Sprint’s new network for their web-enabled phones.

Sprint (S), Clearwire (CLWR)and cable companies Comcast Corp and Time Warner Cable Inc are set to announce a joint venture using WiMax, a technology that promises to support Internet access at speeds up to five times faster than traditional wireless networks, and can support a range of mobile and video applications.

Contribution to the JV are expected to be: Comcast (CMCSA), $1 billion, Time Warner Cable (TWC) will $550 million, Intel (INTC) $1 billion, Google (GOOG) $500 million and Bright House Networks, the sixth-largest U.S. cable provider, $200 million.

What Sprint has done with this is created, for the makers of web phones, which is clearly the future of devices, the preferred network. For users of the products, Sprint ought to see a migration of them to the network as the incrementally faster speeds will trump any past issues the company might have had.

Now, until we know how the JV is formed and the timing of any release of it, investing in Sprint simply because of the announcement is very premature. There still is that nagging Nextel issue. It just may be the Clearwire is the way to go. Without knowing details, it is a guess.

One thing is for sure though. Sprint has gone from the scrap heap of history to potentially the industry leader in a very, very short time…

Disclosure (“none” means no position):None

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