IL Company Sues Sprint Over Clearwire Deal

May 12, 2008 1:16 p.m. EST

Schaumburg, IL (AHN) - An Illinois wireless provider is seeking a court injunction stopping Sprint creating a company with Clearwire to sell high-speed WiMax service. IPCS is asking the court to declare the proposed company breaks a 1999 exclusivity agreement.

IPCS has around 640,000 subscribers in seven states.

Last week, Sprint and Clearwire Communications announced plans for a company that would provide nationwide wireless broadband. The company, estimated to be worth $14.5 billion, gained high-profile investors, including Google and Intel.

In a statement, iPCs said the pact "is yet another attempt by Sprint Nextel to breach the exclusivity provisions of the iPCS affiliation agreement." Sprint is appealing a court loss that requires it to sell Nextel assets within iPCS' region.

Sprint last week sought a judgment from Delware's Chancery Court that would declare the Clearwire venture not a violation of the iPCS agreement.