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Sprint, Nextel Exploring Merger

Article Comments  42  

Dec 9, 2004, 4:30 PM   by (staff)

The Wall Street Journal is reporting that Sprint and Nextel are in ongoing merger talks. According to Journal sources, the deal is being treated as a merger of equals rather than an acquisition by one company of the other. The companies share similar market capitalizations of more than $30 billion. But the situation remains fluid; a deal isn't certain. A combined Sprint-Nextel would have roughly 38.5 million subscribers, compared with Cingular's 47 million, and Verizon Wireless's 42 million. It isn't clear what a deal would mean for Sprint's shrinking landline business, which still makes up nearly half the company's revenue.

more info at Wall Street Journal »
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captain

Dec 9, 2004, 8:10 PM

PTT & Readylink

How would this merger affect these two features? Would one be consumed by another or would they try and find a way to cross network them?
nextel, motorola, qcom are making it so that their iden network and or push to talk service will be compatible on cdma networks. does that answer your question? basically sprint would scrap theirs and use qcom's qchat system.
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nextel18

Dec 14, 2004, 2:34 PM

DJ CNBC's FABER REPORT: Full Transcript Of Report >FON NXTL

DJ CNBC's FABER REPORT: Full Transcript Of Report >FON NXTL



The following is a full transcript of a report issued by CNBC reporter David Faber on Tuesday:


Early tomorrow morning, Sprint Corp. (FON) and Nextel Communications Inc. (NXTL) will announce their merger
...

A deal in which Sprint will pay Nextel shareholders a price equivalent to 1.3 shares of Sprint stock, which while made up almost entirely of that stock, will also include a small dollop of cash.

Sprint and Nextel will also announce their plans, after their merger closes, to spin off Sprint's local exchange business, which currently comprises roughly 7.7 million access lines.

And tomorrow morning, officials at Verizon Wireless and its parent Verizon Commun...
(continues)
nextel18

Dec 14, 2004, 2:34 PM

Vodafone denies report of Verizon talks on Sprint bid

By Madeleine Acey, CBS.MarketWatch.com
Last Update: 12:33 PM ET Dec. 14, 2004
E-mail it | Print | Alert | Reprint | RSS

LONDON (CBS.MW) -- Vodafone Group on Tuesday denied a report that said the British-based mobile network giant was backing Verizon Communications in a possible bid to buy out Sprint Corp.

Vodafone denies report of Verizon talks on Sprint bid

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The news comes as Sprint (FON: news, chart, profile) reportedly is on the verge of agreeing to a $35 billion merger pact with Nextel Communications (NXTL: news, chart, profile). That dealt would be scuttled if Verizon (VZ: news, chart, profile), the largest U.S. telephone company, were to swoop in to acquir...
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br14nguy3n

Dec 9, 2004, 7:02 PM

What????

okay. i apoplgize for this, as it may be a silly question. from what i understand, sprint is purely cdma from the start; and nextel is completely iDEN/tdma based. if these two companies were to merger, how exactly can they share networks, and what does this mean for current customers like myself? if nextel and sprint were to become one company, how exactly would this affect what they do sell in the future (would it be iDEN or CDMA)? thanks.
What makes this work is that iDEN is a dead-end technology, and Nextel is on the verge of choosing a new technology to replace it anyway. One of the options they're considering is CDMA 1xEV-DO release A, which is also an option Sprint is seriously con...
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i belive it could be an overlap of the two networks. remember nextel, mot, and qcom are working on a solution namely qchat in making the push to talk on iden network to be compatible with cdma networks.. thats a very interesting question you raised wh...
(continues)
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Wow, this is really big if this happens. So I'm assuming that the IDEN/Motorola never came up with a viable 3G network for Nextel? What about those Flarion/IDEN network trials, were those network speeds too slow? Also what is the setup time for PTT...
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Yet again, the RadioShack monster gear-head raises his voice to speak.... Laughing

Nextel purchased PCS CDMA frequencies this year from the FCC, ostensibly to test a whole network switch from iDEN/TDMA. Why would they do this?

--Limitations of TD...
(continues)
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nextel18

Dec 10, 2004, 4:15 PM

Sprint, Nextel set for $35B merger

Sprint, Nextel set for $35B merger - reports (FON, PCS, NXTL) By August Cole
SAN FRANCISCO (CBS.MW) -- Sprint Corp. (FON) (PCS) and Nextel Communications (NXTL) have reportedly reached a $35 billion deal that would be a merger of two telecom giants. The Wall Street Journal reported Friday afternoon that the two companies have reached a "tentative agreement" for a merger of equals. Earlier, financial news channel CNBC reported that Sprint would exchange 1.3 of its shares for each share of Nextel. The deal, which includes cash, would be worth $35 billion, CNBC said. Sprint's chief executive would be the CEO of the combined company while Nextel's CEO would become the chairman, CNBC reported
rowanrook

Dec 10, 2004, 1:41 PM

Equals?!!!

Doesn't seem like a merger of equals to me. Looks like Nextel is looking for a rescue squad... I guess we should be happy it's Sprint rather than Verizon. At least Sprint offers flat rate data...
rowanrook said:
Doesn't seem like a merger of equals to me. Looks like Nextel is looking for a rescue squad... I guess we should be happy it's Sprint rather than Verizon. At least Sprint offers flat rate data...
With or...
(continues)
viper

Dec 10, 2004, 11:30 AM

They Have to Merge

They lack the economies of scale of cingular/verizon and its the only way to truly unlock the value of the roughly 100 mhz of MMDS spectrum per market.


But what would happen with T-Mobile?

Sprint/Nextel have a lot of options by the way in regards to which technologies the choose for which bands. They only real certain is that they will seek to migrate people off of iDen and onto something else.

That leaves the question of what they will eventually do with those 900/800/700 bands that nextel has now. Please correct if i am wrong about nextel's bands i seems to remember it being a mess of those three bands. We have the standing questions of what they will do with Nextel's 1.9 GHz and the MMdS bands.

I hope this goes through bec...
(continues)
viper said:
They lack the economies of scale of cingular/verizon and its the only way to truly unlock the value of the roughly 100 mhz of MMDS spectrum per market.


But what would happen with T-Mobile?

Sprint/Nextel have a
...
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viper

Dec 9, 2004, 4:59 PM

Told You So

i've been saying this a long time.

Sprint and Nextel can't compete with behemoths like cincular and verizon.

Here is what i would do.

1) deploy extra channels of EV-DO or just 1XRTT at 1.9 GHz.

Nextel has that fresh 1.9 GHz spectrum which with which to do this. Sprint has the towers and footprint. Sprint can also employ some of nextel's towers for additional cell splitting. This puts nextel's existing user base on CDMA.

2) Deploy flarion at 2.6-2.8 MMDS spectrum

This gives you a true data technology for mobile data cards, residential fixed DSL/cable replacement, and some SOHO DSL/cable replacement. You start small and you EV-DO as a fallback for the mobile data users.

Don't forget Sprint has about 1/3 of this spect...
(continues)
Keep in mind that Nextel's new 1900 MHz PCS spectrum is just above the existing PCS band, so no current CDMA phone could use it. Presumably, if CDMA is deployed in that band, most new CDMA phones from that point forward would support the new, extended...
(continues)
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Yeah, man. You sure did.
jester2ll2

Dec 9, 2004, 5:34 PM

Crap

It figures.
To me, it's like Whitney Houston marrying Bobby Brown. Crack for everyone!!!
 
 
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