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Ask the Editors: Sprint/Nextel merger
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Sprint/Nextel merger
December 14, 2004
Q
What can consumers expect from a merger between Sprint PCS and Nextel?
Submitted by:
Schmidty,
via e-mail
Joni Blecher
Joni Blecher
Section editor
A possible Sprint and Nextel merger is an interesting proposition, but it initially doesn't seem to make a lot of sense, considering the two companies operate totally separate cellular networks: Nextel has its proprietary iDEN, and Sprint uses CDMA.

The most obvious question is which network would survive, or would they both? Also, where will the new company put its efforts for rolling out high-speed networks? There are some similarities: Nextel, and Sprint both go after the business user, and both offer Push To Talk services. But it would be a real boost for Sprint customers to use Nextel's services in that area.

Considering Nextel's extremely loyal users, maybe the two companies will operate as usual with little change. Realistically, though, mergers almost always create shuffling in both branding and service. But besides the obvious issues, my real concern is that the New York Times reports that if this merger goes through, 74 percent of the entire cell phone market would be controlled by three companies. Would consumers benefit from a competitive marketplace? (That's rhetorical.)
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Joni Blecher tests out all the latest mobiles and reports on hot new phones on the horizon.


 



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