Founded by Craig McCaw, Clearwire has managed to raise $1.1 Billion by issuing debt that it will be using to fund its network build out and cover up its debts. The company reported that it is in a pretty bad spot, and will soon run out of cash by the middle of next year. To conserve its funds, it has decided to pare back the marketing expenditure and shed off 15 per cent of its staff.

This funding will be like a boon in the era of financial drain for the company. A reprieve not only for Clearwire, this funding has somehow taken off the pressure from Sprint Nextel, a 54% owner of Clearwire. Sprint is believed to be heavily indebted itself, and could be on the hook in supporting Clearwire for the coming year with a reported $1 to $2 billion in funds.

Although Sprint is using the Clearwire’s Network for its 4G wireless services, tensions run high between both companies as Clearwire prompted three Sprint directors to resign from the board. Things could worsen among the two as Clearwire decided to sell $675 million in secured notes and around $500 million in 30-year notes. This will dilute Sprint’s stake, as this will be paid back either in cash or Clearwire shares, if nothing is decided in the next 30 days.

The ongoing financial strain of company has forced it to cut off its workforce by almost 15 per cent (630 people) as Clearwire is trying to save $100 to $200 million this year alone. Another downside is Clearwire’s ongoing issues  with its other investors. For example, Comcast is the owner of 9 per cent stake in Clearwire, but is not in a mood of increasing its participation anytime soon.

Finally, the Sprint’s partnership with Clearwire is expected to bring some good returns as the former is working on the continuous spread of its WiMAX network. It is noteworthy that Sprint is using Clearwire’s network services towards this goal.