Sprint + Nextel = SprinTel


Boy this one happened fast: Sprint and Nextel are merging and creating the third largest wireless carrier in the country. And with their combined spectrum and wireless assets, the two will be worthy challengers to the new bulked up Cingular and Verizon Wireless. The deal, according to Wall Street Journal is worth $36 billion. Here are some of the specifics of the deal: the post merger will spin-off its local phone business, and become a pure play wireless company. The spin-off will be based in Overland Park, Kansas, while the wireless company will be based in Reston, Virginia. Sprint Chief Executive Gary Forsee will retain the job at the wireless company, to be called Sprint-Nextel. Nextel Chief Executive Timothy Donahue would serve as executive chairman of the new company. The company would have a 50-50 split among board members, the Journal adds.

Some possible things to ponder about: This clearly is a big win for the CDMA technology and Qualcomm. I am sure they must be popping champagne down in San Diego. Secondly, this cannot be good for our friends at Flarion, which has been running trials with Nextel down in North Carolina. In addition, not such good news for Motorola which has been selling a lot of IDEN handsets and other gear to Nextel. They will get a nice chunk of change as a result of this merger, since Motorola does have investments in Nextel.

Reuters reports that deal is unlikely to get as much scrutiny as the $41 billion buyout of AT&T Wireless by Cingular. Still many fear that as the industry consolidates, the consumers are going to suffer and expect the prices to nudge up. Still there are four players in total, so the prices are not going to get out of whack! I do feel that the service is going to improve, because most of the carriers now have ample spectrum to support better voice and the third generation of services.


John H

Someone write me on how these mergers are going to effect tower landlords who currently have four to six carriers from whom they collect rent, including my town government. Or, can we expect new technologies like WiMax to pick up the slack in the vacancies left by the defunct carriers? LNResources@aol.com

Charlie Sierra

I believe the new name will be:

I’m waiting on presser that says Hefner is somehow involved. tic.

This is a dark day, very sad.

Its also a very bad precursor for the creative commons, blogasphere, experimental open source software.

The biggest winner is Verizon. I’ll bet they splurged and spent $20,000 for dinner at Peter Lugar’s.

The loser is the germans (t-mobile), what morons, but why break with past history.

Flarion fails not because of technology, but because of eco-system. Never signed a tier one handset mfg. Timing on this deal and the events immediately preceding are very circumspect. Somebody emailed me that Tim Donahue (Nextel CEO) has sold 64% of his holdings (~$32m) so far this year.

Thank god I’ve never had to come home and find my wife in bed with the lawnboy, but I image this is how it would feel.

Victor Blake

What about SprintLink Managed Router Networks ? (Where they have dial for AOL, and private IP or IP/VPN networks for other customers ? And what of SprintLink ?

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