updated 11/9/2007 10:11:30 AM ET 2007-11-09T15:11:30

Telecommunications service providers Sprint Nextel Corp. and Clearwire Corp. said Friday they are mutually ending their WiMax partnership.

Sprint and Clearwire agreed in July to team up to build a nationwide mobile broadband network using WiMax technology.

The two companies said they could not resolve some issues associated with the letter of intent and failed to reach a final agreement on terms of the transaction.

Sprint said it is still fully committed to developing WiMax services and deploying a WiMAX network. The company expects to continue working with Clearwire on future WiMax opportunities.

Sprint plans to provide services under the Xohm brand, supported by partners including Intel Corp., Motorol, Nokia and Samsung. The company said it chose Google Inc. to provide search, interactive communications and social networking tools through a new mobile portal to future WiMAX mobile Internet customers.

Keith Cowan, Sprint's president of strategic planning and corporate initiatives, said in a statement that the company anticipates a soft launch in Chicago and the Baltimore/Washington markets later this year and a commercial launch in 2008.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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