With the recent departure of Sprint CEO Gary Forsee, there was ample speculation that Sprint would put the brakes on Xohm -- Sprint's mobile WiMax service slated for launch next year (to the tune of $5 billion). The service, which will offer users 2-4Mbps wireless broadband for around $40-$50, was championed heavily by the now-departed CEO.

Though Sprint recently stated their Xohm plan was moving forward, it apparently won't be doing so with Clearwire. Sprint had previously planned to split their mobile WiMax network build with Clearwire 65/35, while allowing users to easily roam between the two networks.

Sprint is now saying the two companies could not agree to terms and have scrapped the deal. The company also says they're reviewing their mobile WiMax business plan as they search for a new CEO, but remains committed to the technology.

It's too early to start the funeral procession for Xohm, as the new CEO could come in and make any number of decisions, including spinning off the unit. It is however, very likely the company could scale back the ambitiousness of the project in order to appease nervous investors.

Meanwhile, Clearwire issued their third quarter earnings, which indicate they've hit the 348,000 fixed WiMax subscriber mark, their third-quarter net loss widened to $329 million and revenue jumped from $27 to $41 million.