Sprint to pay Clearwire $1 billion in 4G fees through 2012

Sprint, which owns the majority stake of Clearwire, has agreed to pay the company at least $1 billion through 2012 for fees associated with the use of its 4G WiMAX network. Sprint and Clearwire entered arbitration late last year after Sprint argued that it shouldn’t have to pay a fee for 4G handsets that exist where Clearwire’s 4G WiMAX network isn’t available. Sprint charges its customers an extra $10 monthly for the option to run on 4G networks and Clearwire charges an estimated $4.46 per 4G-handset owner. According to the Associated Press, Sprint will pay Clearwire $300 million this year and $550 million in 2012. Sprint will also reportedly pay an additional $175 million in a prepaid agreement to use the 4G WiMAX network this year and in the future. Sprint’s CEO, Dan Hesse, told the AP that his company is pleased to have reached a settlement.

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