RSSSprint, Nextel Agree to $35bn Merger
By Nate Mook | Published December 15, 2004, 1:26 PM
Despite recent reports that Verizon was interested in making a bid for Sprint's wireless unit, Nextel and Sprint have officially announced plans to merge companies. The new company, which will be the third largest U.S. wireless carrier, will eventually migrate Nextel users off its iDEN network onto Sprint's CDMA infrastructure.
In the deal, which closely mirrors earlier speculation, Nextel shareholders will receive 1.3 shares of Sprint stock, along with a small cash payout not to exceed $2.8 billion in total. Sprint CEO Gary Forsee will stay on as Chief Executive of Sprint Nextel, while Nextel CEO Timothy Donahue becomes Executive Chairman.
While Sprint, and Nextel themselves are great wireless companies. You have to wonder if the merger is better for the wireless industry. Competition will become less, and therefore new towers would theoretically be put up slower without as many large competitors to worry about. If Sprint decides to put their equipment up top of the Nextel towers, then so be it. But adequately provide wireless coverage through-out the states... dropped calls are still a problem for all carriers. I guess we can only hope that the new company has a fire lit underneath of them.
Score: 0
My family's experiences with Sprint were not positive at all, with monthly disputes at bill time because of massive phantom overages and minutes that couldn't be accounted for. We were being charged for roaming even when the phone was set to turn service off while roaming (and with meticulous network status icon watching at that). Calling in to dispute such outlandish charges took up much too much time and only served to agrravate us more. The phone was shelved for the last couple months of the contract and just not used.
My switch to Nextel afterward was very pleasant. Never had roaming problems (I either was or wasn't, and the phone was clear about it), all my usage was accounted for, and customer service was much more responsive to questions. I ultimately left Nextel after I moved into a low-signal area that wasn't a growth priority at the time.
I'm not one of those "My experience was bad, therefore the whole company is rotten" people, so I'm not trying to drag Sprint through the mud. I just hope that the new combined company takes Nextel's customer-oriented support strategy over what I experienced to be a somewhat hostile and inflexible strategy with Sprint.
I'd been eyeing going back to Nextel now that my area is developing a large enough customer base to warrant new towers, but I'm going to have to wait and see now that Sprint is involved. I know my experiences with Sprint probably aren't indicative of the majority, but as the saying goes.... Once bitten, twice shy.
Score: 1