Sprint (NYSE: S) and Clearwire have called off their joint project to build a WiMax network, with the complexities of the deal and the departure of Sprint CEO Gary Forsee making it too difficult to reach a pact according to the Wall Street Journal. “In recent weeks, Sprint’s board considered a variety of options with respect to the Clearwire partnership, including the idea of spinning off Sprint’s WiMax unit and merging it with Clearwire or bringing in a consortium of strategic investors to help finance the project. Any significant transaction would likely have to wait for Sprint to hire a new CEO, people familiar with the matter say.” It’s seen as a blow to Clearwire, and also indicates the problem Sprint has with its planned WiMax network—the company wants it, but the next CEO may scale back the plans considerably.

Here is the official Sprint release.

• Sprint Reviewing WiMax Options
• Sprint Announces WiMAX Branding: Xohm
• Sprint to Develop Mobile Wi-Max Portal With Google; Will Provide Open APIs