Sprint-Nextel Merger Signals Provider Consolidation
Mergers among major cellular carriers could mean better coverage and lower prices for end users, as long as regulators ensure that things don't go too far.
January 14, 2005
For enterprises, consolidation increases the prospects for a competitive 3G data-services market. Verizon has nearly completed its nationwide rollout of CDMA2000 EV/DO services. That's impelled Cingular to launch its GSM/UMTS system nationwide. Both systems offer roughly equivalent services that approach broadband quality. The combined Sprint-Nextel company will face pressure to counter those initiatives. It also was refreshing to hear that Sprint-Nextel plans to migrate Nextel customers to CDMA; the availability of Nextel towers and spectrum should give the newly merged company a good chance to compete.
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