Bloomberg and Reuters are reporting and citing unnamed sources that confirm that beleaguered internet service provider Clearwire is currently attempting to auction off some of its current spectrum holdings in order to raise the funds necessary to continue operations, following extended talks with T-Mobile USA. The report goes on to confirm that AT&T, Verizon Wireless and Germany’s Deutsche Telekom are interested in the spectrum auction which is currently on its second round. Clearwire is seeking $5 billion from the transaction.
This follows months of hand wringing from both Clearwire and Sprint on the direction of the venture as the company is still relying on continued investment from its partners in order to continue operations in the short-term, with more partners refusing to continue investment past their current holdings. The auction has also drawn interest from majority Clearwire stakeholder Sprint, which had three executives resign from the Clearwire Board of Directors due to changes in antitrust law late last month.