Rumor mill: Cable MSOs may back Sprint's Clearwire takeover

Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and other top cable MSOs may help Sprint (NYSE: S) acquire wireless broadband provider Clearwire (Nasdaq: CLWR), Bloomberg reported Friday, citing three anonymous sources.

In addition to talking to existing Clearwire investors Comcast, Time Warner Cable and Bright House Networks, Sprint is reportedly talking to Cablevision (NYSE: CVC) and Cox Communications about funding an acquisition of Clearwire. Sprint already owns a 54 percent stake in the WiMAX provider.

Comcast and Time Warner Cable have begun marketing wireless broadband services to subscribers by reselling access to Clearwire's 4G network. Comcast brands its 4G product Xfinity Internet 2go, while Time Warner Cable calls its service Time Warner Cable Mobile Internet.

While cable MSOs haven't yet seen strong demand for wireless broadband from their subscribers, the surge in popularity of Apple's (Nasdaq: AAPL) iPad and other tablets and smart phones could drive interest in 4G subscriptions. Investing in Clearwire could help cable MSOs compete against rivals AT&T  (NYSE: T) and Verizon (NYSE: VZ), which are also ramping up their 4G efforts.

For more:
- see Bloomberg's story

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