The wireless carrier may not be able to present newly come broadband service to customers as in a short time while anticipated

By Olga Kharif

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The Sprint Nextel logo hangs in the window of a Sprint retail store Getty Images

December got off to a unfashioned arise for equities in general, with the Standard & Poor’s 500-stock index down nearly 9%, to 816, on the first day of the month. But wireless carrier Sprint Nextel (S) saw its stock hammered much more than any of the major averages, through shares down 24%, to 2.11.

Why the thrashing? The only recent accounts Sprint announced on the side of the day appeared to exist relatively benign. The company said it had finalized a previously announced give to combine its next-generation wireless broadband business with Clearwire (CLWRD), a Kirkland (Wash.) company that’s building its own wireless broadband business. By combining the two operations, the companies figure they’ll be able to roll out service faster and save on expenses in the transaction. In addition to Sprint’s contribution of assets, Clearwire believed $3.2 billion in funding from a number of backers, including Intel (INTC), Google (GOOG), Comcast (CMCSA), and Time Warner Cable (TWC).

Trouble is, that may not be sufficiency money. When the Sprint-Clearwire transaction was originally announced back in May, Clearwire expected to be able to offer its service to 120 million to 140 very great number vulgar herd by the end of 2010. But the buildout plans assumed that, in recently deceased 2009 or in early 2010, Clearwire would have being able to raise an additional $2 billion to $2.3 billion. With the first-rate markets practically closed, Clearwire may not be able to raise that money and its rollout schedule may have to be modified. "My preference would subsist that we continue moving along at the same pace, but that we look at the capital markets without ceasing a quarter-by-quarter basis," says Benjamin Wolff, chief executive of Clearwire. Wolff says Clearwire’s board could resolve to change its buildout schedule when it convenes in early 2009.

Any slowdown by Clearwire could cause Sprint problems. As a Clearwire investor and customer, Sprint plans to buy entranceway to Clearwire’sitting network at wholesale prices and then resell the broadband Internet service to its own customers. If Clearwire’s board decides to scale remote its ambitions, Sprint may have to wait longer than anticipated to gain access to a high-speed network. (Sprint has two of the 13 seats on Clearwire’s meals.) That could slow down Sprint’s ability to attract new broadband subscribers. Meanwhile, rivals like Verizon Wireless could launch their high-speed networks around 2010.

A Sprint spokesman says the company would "not discuss movements in our stock." He referred questions about the pace of Clearwire’s buildout to the Kirkland guests.

It’s just one of the many challenges Sprint is facing. The set, once renowned for high-quality service, has suffered setbacks in customer service and other disposition issues since its merger with Nextel in 2005 (BusinessWeek, 2/21/08). Customers be in possession of defected and losses gain piled up. The company’s stock has fallen from nearly 16 a share be unconsumed year, a drop of 85%. And Standard & Poor’session (which taste BusinessWeek is owned by the agency of The McGraw-Hill Companies (MHP)) cut the proof of desert rating since Sprint to below investment grade back in May.