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Sprint and Nextel: Cellular Consolidation Continues: Page 2 of 2

From a broader perspective, this merger is good news for the overall
U.S. cellular market. After AT&T and Cingular tied the knot, creating a
company with about 47 million subscribers, it was inevitable that
smaller players like Sprint and Nextel would need to make some moves.
Combined, Sprint Nextel will have about 36 million customers, assuming
the company can hold onto them--not an easy thing in an era of number
portability. Verizon, the second largest U.S. carrier, has about 41
million customers. Between the three, there will likely be significant
competition in the U.S. market as well as robust nationwide coverage and
operational efficiencies. While some might argue that more companies
would provide a better competitive landscape, the scenario that unfolded
this week seems better for competition than a Verizon acquisition of
Sprint, which was also a hot topic of recent rumors. The odd-company-out
is T-Mobile, with about 16 million subscribers in the United States.

Dave Molta is Network Computing's senior technology editor. Write to him at [email protected]