Fulfilling a condition of its recent merger with BellSouth, AT&T agreed to sell or transfer to Clearwire for $300 million in cash 2.5 GHz spectrum that is licensed or leased by BellSouth. Clearwire, a wireless Internet service provider founded by cellular pioneer Craig McCaw, is one of two companies (the other being Sprint Nextel) that intend to use channels in the 2.5 GHz band to deploy a nationwide WiMAX network. Currently, Clearwire is using a technology similar to WiMAX to provide wireless broadband services to 206,000 customers in 34 markets, and the company plans to upgrade to the WiMAX standard eventually. The spectrum covered by the sale includes channels designated for commercial broadband radio services at 2.5 GHz as well as Educational Broadband Service spectrum that is licensed to educational and non-profit groups but is typically leased to commercial entities such as BellSouth. The companies pledged to close the transaction “promptly” after receiving required regulatory approvals.