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Sprint and Nextel Make It Official

December 15, 2004
Sprint and Nextel have announced approval by both company's directors to join forces in what they call "a merger of equals." The combination will create America's third largest wireless company, augmented by a global IP network that will offer consumer, business and government customers new broadband wireless and integrated communications services.

Sprint-Nextel • Sprint, Nextel Complete Merger • FCC Clears Sprint, Nextel Merger • Shareholders OK Sprint, Nextel Merger • Sprint and Nextel Make It Official • Sprint, Nextel Merger May Be Next • Verizon In Bid For Sprint?

The new company, which will be called Sprint Nextel, also intends to spin off to its shareholders Sprint's local telecommunications business following the merger.

For customers, the merger combination will allow Sprint Nextel to:

• Offer digital wireless service in all 50 states, Puerto Rico and the U.S. Virgin Islands. Sprint Nextel and its affiliates and partners cover a total domestic population of 262 million.
• Provide consumers more choice through investments in wireless multi-media, web browsing, messaging, gaming and music on the go.
• Provide integrated wireless and IP-based wireline solutions to business.
• Improve customer service and sales performance through joint capabilities.
• Invest to deploy next-generation wireless data services.
• Improve wireless network quality and coverage.

The consolidation may not be over just yet. Published reports this week suggest Sprint itself is in play, with Verizon Communications Inc., the major stockholder in Verizon Wireless, interested in acquiring Sprint.

Sprint and Nextel currently have a combined total equity value of approximately $70 billion and serve more than 35 million wireless subscribers on their networks and 5 million additional subscribers through affiliates and partners. The two companies, along with their affiliates and partners, operate networks that directly cover nearly 262 million people, more of the U.S. population than any other carrier, the companies said in a statement.

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