July 14, 2005
The merger between Sprint and Nextel Communications is another digit closer to completion after stockholders of both firms overwhelmingly approved the union. Sprint plans to acquire Nextel in a $35 billion deal, making the nations third-largest wireless company even bigger.
The last hurdle is a final OK from the U.S. government. Two agencies, the Federal Communications Commission and the Justice Department will have the final say on the matter.
A merger would create an entity of more than 40 million wireless subscribers, but it's not clear how that would affect customers of the individual companies.
Currently, Sprint is the number three U.S. wireless phone company and has recently invested heavily in infrastructure. The company has announced it will spend $3 billion over the next three years to upgrade its mobile network and develop high-speed Internet services.
Sprint has over 26 million subscribers and produces more than $26 billion in operating revenue.
Nextel boasts the largest all-digital wireless network in the country. It has nearly 15 million subscribers, most of them businesses, which like Nextel's walkie-talkie "push to talk" instant connection feature. Sprint has also begun development of a walkie-talkie feature.
Sprint, on the other hand, has a nationwide wireless data system, something Nextel would have to spend billions to develop.
Nextel's management team is highly regarded, something that's seldom been said about Sprint's.
