Big news in the WiMAX market this week as Sprint and Clearwire cancelled a joint venture to build a nationwide WiMAX network. Each plan to go it alone, they claim, but with Sprint facing corporate headaches and Clearwire limited in its ability to quickly find new partners, the goal of nationwide WiMAX undoubtedly took a hit.

Coupled with ongoing problems faced by municipal Wi-Fi projects, the vision of alternative wireless broadband services emerging has run into a healthy dose of reality. And while press reports this week had Google (not to mention Comcast) stepping in to the WiMAX breach, that apparently was as big a fantasy as the so-called gPhone.

The challenges for the Sprint-Clearwire project turned out to be more business- than technology-related – much as has been the case with muni Wi-Fi. When Sprint CEO Gary Forsee resigned recently, under growing criticism of Sprint’s poor financial performance, the fate of the high-profile but risky partnership was most likely sealed.

For now, Clearwire is pursuing its network launch alone. Company officials will launch its first WiMAX networks in mid-2008 and aim to pick up markets where it would have counted on Sprint by the following year. But WiMAX’s lead in the race to deliver next-generation wireless has clearly suffered a setback.

E-mail me at rkarpinski@telephonyonline.com.