Sprint's Clearwire investment hits a snag as company reports $505 million in losses
Illinois-based iPCS, a wireless affiliate of Sprint Nextel, has sued the number-three wireless carrier in Illinois Superior Court. Its claim that the new company Clearwire, with a majority stake held by Sprint, infringes on that exclusivity agreement signed in 1999. The affiliate successfully sued Sprint over the Nextel merger, with Illinois courts awarding iPCS a victory in March. Meanwhile, Sprint Nextel (as it is officially known) reported $505 million in net losses for the first quarter on an eight percent drop in revenue, thanks mostly to attrition in the number of long-term contract customers. That the company can't get these issues worked out behind the scenes, or at least settle these lawsuits before a punitive verdict is reached, doesn't speak well of the management at Clearwire's new parent company. (Photo by AP/Reed Saxon)