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Sprint And Nextel To Combine In Merger Of Equals

Discussion in 'Wireless News' started by DandyDon, Dec 9, 2004.

  1. DandyDon

    DandyDon Senior Member
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    Sprint and Nextel Merger ?

    Well it looks as if the rumor mill is talking a Sprint Nextel merger. There are several stories on this RUMOR today.

    Nextel owns a bunch of MMDS spectrum, and Sprint does as well. I think combined the own just about the whole country so maybe there is some merit to the rumor.

    http://rcrnews.com/news.cms?newsId=20722

    Another here: http://www.businessweek.com/investor/content/dec2004/pi2004129_8916_pi010.htm

    And more: http://www.forbes.com/markets/bonds/2004/12/09/1209automarketscan02.html
     
  2. bobolito

    bobolito Diamond Senior Member
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    Re: Sprint and Nextel Merger ?

    "Nextel could set itself up for a possible deal with either Sprint or Verizon Wireless."


    Verizon what? :eek: Please! There's no way Verizon and Nextel are entering any deals. They despise each other! Now, with a Sprint/Nextel deal that might sour relationships between Sprint and Verizon.

    Another question is what about T-Mobile? If this happens they will certainly be left in the cold. Poor T-Mo... :(
     
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  3. Kenny

    Kenny Senior Member
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    Re: Sprint and Nextel Merger ?

    They just talked about this Sprint-Nextel merger rumor on CNBC. They're saying that this rumor looks indeed to be turning into fact. More confirmed info to come tomorrow.
     
  4. Steve B

    Steve B Bronze Senior Member
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    Re: Sprint and Nextel Merger ?

    Interesting, but would the government allow the merger? There was quite a few people upset about Cingular buying out AWE. If there is truth to this rumor then this merger is going to be an uphill battle. That is what I think. As always, I could be wrong.
     
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  5. jones

    jones Silver Senior Member
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    Re: Sprint and Nextel Merger ?

    If they merge they will still be smaller than VZW (38 million)
    so it might get approval.
     
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  6. agentHibby

    agentHibby Iowa Cellular Guru
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    Re: Sprint and Nextel Merger ?

    If this happens I doubt there will be anything to divest. Verizon could pick another provider to merge.

    I do feel sorry for T-Mobile what are they going to do if this happens??? :( :crying: Not any big GSM guys on PCS to get? Even if they got Edge, Suncom, and Iowa Wireless they would still be way behind and is sounds like they are not going to do HSPDA until 2006, they are thinking about getting more airwaves.
     
  7. agentHibby

    agentHibby Iowa Cellular Guru
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    Re: Sprint and Nextel Merger ?

    Ok I got it!! :idea:
    Nextel and Sprint PCS Merge to make a 40 million customer company

    Then Vodafone exits the Cellco Partnership and Alltel combines its network with Verizon Wireless. Alltel gets Vodafone's 45% US Celluar and Western Wireless will get divested markets.

    Vodafone, Deutsche Telekom, and NTT DoCoMo form a partnership for a new Wireless company to take over T-mobile. This wireless company will have cheaper rates than the others and better international rates than the other providers in the US. This could save T-mobile from being hammered down and get wireless networks in many more parts of the US.

    Will this happen?? agentHibby gives this 5% chance! :badidea: :dunno:
     
  8. Gamer03

    Gamer03 Technology Aficionado
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    Re: Sprint and Nextel Merger ?

    Who knows....but if it did it would be pretty sweet imho. :D
     
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  9. Yugopro

    Yugopro Senior Member
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    Re: Sprint and Nextel Merger ?

    A quick background here.

    Is Nextel getting 800 or 1900 for their existing iden spectrum?

    If this goes through, will Sprintel have two bands or two modes?

    Lets speculate on the technical aspects!

    Larry! Larry! Where are you?
     
  10. agentHibby

    agentHibby Iowa Cellular Guru
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    Re: Sprint and Nextel Merger ?

    Nextel is getting the all NEW PCS G Block 1900 MHz (this is a nationwide license)

    Nextel will be handing back some of its 800 MHz SMR licenses to complete the deal.

    All of Sprints Network is PCS 1900 MHz

    For commerical wireless providers Nextel has the most coverage without any cellular licenses, in terms of square mile coverage. :confused:
     
  11. larry

    larry Sprint loyalist and former mod
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    Re: Sprint and Nextel Merger ?

    Nextel is going to be giving up its 800MHz frequencies because they interfere with emergency channels/radios. They were already going to have to go to the 1900MHz spectrum regardless if an aquisition happens. If they go to CDMA (which is very likely) this merger would make sense. Think of the possibilities of Nextel and Sprint customers being able to use PTT with one another. :) That would be sweet. And Nextel would end up with much better phones and cheaper rate plans. I'm just hoping if it happens I don't lose my grandfathered sweet deal of a plan. But that's a long way off to start worrying about it now.
     
  12. Yugopro

    Yugopro Senior Member
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    Re: Sprint and Nextel Merger ?

    Too bad they wouldn't pick up any 800.
    If the combination would have that second band, they would truly be a force to reckon with. But what the hey, size means power.

    I know that push to talk Nextel feature works everywhere now.
    What happens if they migrate the works to 1900 ???????

    You see my point? What if a worker deep in a construction site can't connect with his walkie talkie? Does Nextel lose the edge?
     
  13. Matt

    Matt Twin girls!
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    Re: Sprint and Nextel Merger ?

    I think TM will be fine in the long run - there's no pressure on them to get to 30M quickly - being part of TM Int'l they can get good pricing etc. The need spectrum which I will make a new thread.
     
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  14. larry

    larry Sprint loyalist and former mod
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    Re: Sprint and Nextel Merger ?

    Another thing worth mentioning is that Sprint and Nextel both have very high ARPU's ($69 and $63) and so this combined company would be bringing in a lot of $$$. Nextel also has the most loyal customers in the business so churn would figure to be low.

    Think of all the new coverage that would come from a combined deal between the two once they merge their cell sites together. It might even be better than Verizon's and Cingular's in many areas. I know here in LA and Orange County Sprint's network already is very competitive with anyone else and adding Nextel's towers would probably make them the very best here.
     
    #14 larry, Dec 9, 2004
    Last edited: Dec 9, 2004
  15. bobolito

    bobolito Diamond Senior Member
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    Re: Sprint and Nextel Merger ?

    A Sprint/Nextel deal is the only way for Nextel to gracefully exit the market before they shamefully crash into the dead-end of their outdated network. They know they can't compete in the 3G race so they want the easy way out.

    It will also benefit Sprint because Sprint wants to cater to the more lucrative business market. This is why Cingular got AWS. So, if Sprint/Nextel happens, watch for big bucks coming to Sprint which will get them out of their financial hiccups. So I guess the deal benefits both companies in good ways.

    Sprint can also take the iDEN network and use it only for PTT and leave voice service on CDMA with new special CDMA/iDEN phones. What an easy way to dump ReadyLink and get something that really works for PTT! :D

    The only problem is I don't see Motorola licensing their precious iDEN PTT technology to companies like Samsung, LG, and others that provide phones for Sprint. So any iDEN/CDMA phones will probably be from Motorola only.
     
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  16. Kenny

    Kenny Senior Member
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    Re: Sprint and Nextel Merger ?

    Sprint, Nextel gain on merger reports
    Wall St. Journal says companies are in discussions

    By Jordan Robertson, CBS MarketWatch.com
    Last Update: 8:45 PM ET Dec. 9, 2004

    SAN FRANCISCO (CBS.MW) -- Shares of wireless carriers Nextel and Sprint rose Thursday after the Wall Street Journal reported that the companies are discussing a merger.

    Sprint (FON: news, chart, profile) rose $1.78, or 7.9 percent, to $24.28. Nextel (NXTL: news, chart, profile) gained $1.84, or 6.6 percent, to $29.81.

    In its Heard on the Street column the Journal said merger speculation is "gaining increasing buzz" on Wall Street and among telecom executives. Later in the day, the online Wall Street Journal cited "people familiar with the matter" and said there are merger discussions.

    A Sprint spokesman declined to comment. Nextel could not immediately be reached for comment.

    Analysts were split on the feasibility of such a merger, considering that the companies have similar market values of more than $30 billion.

    Saying that combining the two management teams would be "like trying to mix oil and water," analysts with Goldman Sachs said in a research note that the deal would be tough for one side in particular to negotiate.

    Nextel would have more to gain than Sprint -- because Nextel would avoid having to build out a new data network and would have instant access to a broader market -- which would likely put Sprint in a better bargaining position, the analysts said.

    "This is our source of skepticism that such a deal can get done in the near term," they wrote.

    Calling the potential merger "a constructive step forward for the wireless industry," Smith Barney analysts wrote in a research note that Sprint would benefit from a bigger network, Nextel's business channels, and the potential for creating enough stand-alone wireless capacity to sell or spin off Sprint's local assets.

    "In our view, we think a combination between [Nextel] and [Sprint] has merit," the analysts wrote.
     
  17. AnthroMatt

    AnthroMatt Big Meanie
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    Re: Sprint and Nextel Merger ?

    This is merger talk though, not acquisition right? So both brands (Sprint and Nextel) would remain following such a merge, correct?
     
  18. Matt

    Matt Twin girls!
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    Re: Sprint and Nextel Merger ?

    Who knows. If there is a merger/acquisition, it would be addressed in the initial press release.
     
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  19. bobolito

    bobolito Diamond Senior Member
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    Re: Sprint and Nextel Merger ?

    According to my Financial Management book, there is a merger in every acquisition. So basically, merger or aquisition, it doesn't matter how you call it. It seems logical to me that the final name would be Sprint because they would be the acquirer. I don't see Nextel buying out Sprint Corporation and all its companies.
     
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  20. Steve B

    Steve B Bronze Senior Member
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    Re: Sprint and Nextel Merger ?

    Well, it looks like Verizon Wireless may be in the ring to get Sprint. Take a look at this article (link below).


    http://www.nytimes.com/2004/12/10/t...partner=ALTAVISTA1&pagewanted=print&position=


    Now, this is getting even more interesting. I realize that these are all just preliminary "talks", it could all stop in an instant. Just for the sake of arguement, lets say the talks are going through. First the big thing was Nextel & Sprint, now possibly, it might be Verizon Wireless & Sprint. OoOoOo
     
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  21. Gman

    Gman Senior Member
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    Re: Sprint and Nextel Merger ?

    No one has discussed the fact that Nextel is considering what technology to replace IDEN with . CDMA is one of the options and a merger with Sprint would facilitate that move. Nextel owns the rights to a CDMA version of PTT developed by Qualcomm. A merger will provide benefit to both partners.

    In the NY Times article they say an announcement could be made as early as next week which surprised me...


    G.
     
  22. agentHibby

    agentHibby Iowa Cellular Guru
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    Re: Sprint and Nextel Merger ?

    The problem is that I don't think Verizon Wireless and Sprint PCS could merge.
    Reason is too much divestment. They would have too much market controll in a bunch of markets and like a few with AT&T/Cingular deal. It might be possible for Verizon to grab some airwaves before Nextel and Sprint PCS merge, but I doubt that.
    Bottom line is everything is 100% pure speculation! We don't really know what will happen.

    If something does to Sprint PCS wonder what will happen to the affiates?? :headscrat And if one holds a license will they had it over??

    If this happens the deal for Airgate/Anamosa could not be that big of a deal.

    And who knows Verizon might buy the whole thing Sprint (FON)
     
  23. larry

    larry Sprint loyalist and former mod
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    Re: Sprint and Nextel Merger ?

    I agree I think a Verizon/Sprint merger would have a tough time getting approval from the FCC. It would create too big of a carrier and there would be too much overlap. But then again what do I know.
     
  24. AnthroMatt

    AnthroMatt Big Meanie
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    Re: Sprint and Nextel Merger ?

    With the right lobbyists, anthing can be approved! ;)
     
  25. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
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    Re: Sprint and Nextel Merger ?

    Verizon and Sprint will never happen. That would just create too large of a company and require a lot of divestmens if somehow the FCC did approve it. I'm pretty confident that if Sprint and Verizon tried to merge the FCC would deny it because they would think it would create a monolopy and hurt competition.

    I'd have to agree with that too. Verizon already has a large wireless network as well as landlines, and DSL. Sprint also has a wireless network, Landlines, and DSL. A Sprint/Verizon merger would have one company controlling too much.
     
  26. WirelessBeachBum

    WirelessBeachBum Soylent Green is People
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    Re: Sprint and Nextel Merger ?

    I'd love to get back to the days of just two carriers in town, wireless is progressing toward the path of being a flat rate service anyway.

    Antitrust concerns would keep the competition hot.
     
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  27. AnthroMatt

    AnthroMatt Big Meanie
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    Re: Sprint and Nextel Merger ?

    I just don't think a SPCS-VZW merger would make financial sense for VZW. It would seem to be a pretty costly move with minimal returns, relatively speaking. A VZW takeover of a company like Alltel or USCC would seem to be a much more appropriate move, if VZW was even interested in making such a move.
     
  28. azcellphonejunkie

    azcellphonejunkie The Cell Phone Junkie
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    Re: Sprint and Nextel Merger ?

     
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  29. WirelessBeachBum

    WirelessBeachBum Soylent Green is People
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    Re: Sprint and Nextel Merger ?

     
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  30. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
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    Re: Sprint and Nextel Merger ?

    Talk of Sprint and Nextel merging made it on the home page of Yahoo! today. :eek:

    Nextel, Sprint Talk Merger
     

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