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View Full Version : Sprint-Nextel merger is a total technology mismatch


Mntsnow
12-13-2004, 9:53 AM
Talk about throwing the baby out with the bathwater, the proposed merger between US cellular operators Sprint and Nextel makes no sense to the INQ, They're using entirely incompatible technologies.
Nextel has built up a solid business customer subscriberbase while Sprint is very consumer focussed. It even hosts Virgin Mobile's prepaid network.

So on paper what would it do? About the only advantage is that it would create the third largest network operator, supposedly called Sprint-Nextel, with around 39 million subscribers. Cingular is Number One (thanks to its acquisition of AT&T Wireless) with 46 million subscribers while Verizon Wireless is Number Two with 42 million subscribers. Read more at Inquirer (http://www.theinquirer.net//?article=20181)

Axel
12-15-2004, 3:50 PM
You missed it, Snow - tech asside - the wireless market is about ownership of airwave bandwidth - i.e. frequencies. Tech changes from week to week - especially in the telecom market - but frequency ownership - well now - that is a finite commodity which can be bought, sold, traded and so on and the price of it just keeps going up. And NExtel - well - they just got a honey of a deal from the FCC just a few months back....

a Bill
12-15-2004, 5:51 PM
True, airwaves are the thing. I still think this mismatch of technologies isn't going to help the company on Wall Street though. This is where you missed it Axel, Wall Street doesn't employ common sense :D j/k

Axel
12-16-2004, 1:08 PM
wall street don't know from tech.....if they did, Beta would have won over VHS - but we all know how that went - ;-) So - it depends upon how the new company markets itself. If they hire the same publicist the TMNT's or say, the new kids had - then they are going to do fine and their stock will go up, tech complications asside......