Filed under: Google (GOOG), Sprint Nextel Corp (S)

As Tom mentioned earlier, Sprint Nextel Corp. (NYSE: S) is merging its next-generation wireless assets with Clearwire Corp. (NASDAQ: CLWR) to form a new joint partnership that — finally — will create a high-speed wireless internet network that covers most of the U.S. Although Sprint’s Xohm service has been decried by investors as a “non-core” asset weighing down Sprint’s pocketbook, it still has enormous potential in the near future. Sprint’s not in terribly good shape — but it does have vision. Of course, vision and execution are two different things.

So, it is pleasing to think that if the new Sprint-Clearwire venture can build out is national presence successfully and capture customers tired of limited high-speed internet service, the world will be its oyster. Of course, other companies are contributing to the venture as well, including Google, Inc. (NASDAQ: GOOG). Why would Google want to put money into this? Because this could be Google’s most important investment ever.

Bypassing the telephone and cable companies that have a stranglehold on most of the high-speed internet business in the U.S. has long been the dream of Google. It doesn’t want a middleman in the way of it connecting consumers and businesses with the information they seek. Although Google wasn’t successful in the recent FCC radio auctions (maybe by design), finding a way to provide internet service directly to its customer base would give Google on a much more powerful perch than it has even today. Google could even buy the new Clearwire partnership outright once it’s established.

I think they’re starting to get giddy in the Google board room.

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This entry was posted on Tuesday, May 13th, 2008 at 6:14 pm and is filed under Goog news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.