In about one week, Sprint and Nextel will have finalized their merger and jointly become a powerhouse wireless service provider called the Sprint Nextel Corporation. This was made possible by the FCC’s approval yesterday for the pending transaction from earlier in December 15th 2004. Once completed the Sprint Nextel common stock will trade on the NYSE under the ticker symbol “S.”.
Later in the fall the Nextel name will not be used for promotions and the company’s go-to-market brand will be Sprint. However, Nextel and iDEN products will continue to be offered from the new Sprint Nextel Corporation.
This is an equal merger, the Sprint name is a very strong brand in North America which is my guess as to why they will continue to use it.
Current Nextel and Sprint customers need not worry, the merger is not expected to affect any current service offerings or network coverage. At first it seemed like it may be a problem to merge the two companies, since Sprint primarily offers CDMA services while Nextel offers iDEN, but it should have no effect. These will continue to be an option to customers as they both have their benefits depending on your wireless needs.
“When we complete the merger, Sprint Nextel will have unmatched wireless capabilities and a global IP network to provide consumers with high-value, integrated communications solutions to meet their needs. We are eager to get started.” said Tim Donahue, president and CEO of Nextel.