Sprint Nextel Affiliate iPCS Files Suit To Block WiMax Merger With Clearwire

A Sprint (NYSE: S) Nextel affiliate operating in Schaumburg, Ill. said it has filed a lawsuit against its parent company to block the joint venture it was forming with Clearwire to roll-out a nationwide broadband company, AP reported. iPCS has 640,600 subscribers in seven states, and filed the suit in Illinois, alleging the new Clearwire service would compete with in its markets and therefore violates an exclusivity agreement signed with Sprint in 1999. Release. Its opposing the $14.5 billion merger that Sprint Nextel announced last week with Clearwire (NSDQ: CLWR). In the deal, the new company would receive outside funding coming from a conglomeration of companies, including Time Warner (NYSE: TWX), Comcast (NSDQ: CMCSA), Intel (NSDQ: INTC) and Google (NSDQ: GOOG).

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