Big Tech Firms to Invest in Wireless

The race to bring consumers ultrafast wireless Internet service is on. As early as Wednesday, an unlikely alliance of titans from the cable, Internet and chip industries will disclose they are investing $3.2 billion in a company that will deliver Web access for cellphones and laptops at speeds much faster than what is available today using a technology called WiMax. Analysts say the venture, valued at more than $12 billion, will have a two year head-start on rivals Verizon Wireless and AT&T Inc., which are just beginning to sketch out plans for their next-generation wireless networks. The venture includes wireless provider Sprint Nextel Corp. and Clearwire Corp., a start-up backed by cellphone pioneer Craig McCaw. Other big-name backers include cable-TV giants Comcast Corp. and Time Warner Cable Inc., Internet giant Google Inc. and chip maker Intel Corp. The deal gives the cable operators and Google prominent roles in shaping the future of mobile Internet access and a new outlet as growth begins to slow in their traditional content businesses. Intel gains new support for WiMax, a technology standard the company has championed and that will be used in the venture's high-speed network. The venture must still be approved by federal regulators.
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