IPCS backs down over Clearwire JV - for now

IPCS has withdrawn its request for a temporary injunction against the proposed New Clearwire joint venture, comprising Sprint Nextel’s WiMAX business unit (Xohm) and Clearwire.

Shareholders of Clearwire and Sprint Nextel are due to vote on the deal Thursday but IPCS, an affiliate of Sprint, thought this would be premature since it is starting court proceedings against the JV in Illinois next month.

The Sprint affiliate said it withdrew its injunction request after securing a commitment from both Sprint and Clearwire that it would be given two months’ notice before the JV launched services in IPCS’ licensed areas.

IPCS’ gripe with New Clearwire, which intends to roll out mobile WIMAX services nationwide, is that it would break a service exclusivity agreement it has with Sprint in the regions where the affiliate runs its Sprint-branded service. “The stipulation does give some protection to the company in the short term,” said an IPCS spokesperson on the notice period conditions.

It is still IPCS’ intention – through the courts in Illinois – to scupper New Clearwire’s coverage ambitions in the areas which it offers service.