December 14, 2004
The wireless world suddenly resembles a giant game of Pac-Man. On the heels of rumored reports that Sprint is about to acquire Nextel come rumblings that Sprint itself is about to be gobbled up by Verizon Communications, which controls 55% of Sprint competitor Verizon Wireless.
Reports appearing in various publications and online suggest the bid is awaiting a final "go" from Vodafone Group, Verizon Wireless's partner. Verizon Wireless is the nation's second-largest wireless operator, while Sprint is number three. A merger would make Verizon Wireless number one over Cingular, which just completed its acquisition of AT&T; Wireless.
Got all that straight?
For consumers, all these proposed mergers could create more than a little confusion, as not only companies are merged, but so are rate plans, calling areas and technology. But industry analysts say a few legal issues must be settled first, most notably some Verizon divestitures. Both Verizon and Vodafone insist they have not yet had any discussions regarding a possible acquisition of Sprint.
Meanwhile, Sprint is said to be ready to formally make its bid for Nextel, the nation's fifth largest wireless provider, giving it additional leverage in the wireless market. The $36 billion offer could come as early as Wednesday.
