Rumors Pushing Sprint - Nextel Combo
It's been rumored before, but the concept of Sprint buying Nextel is getting plenty of attention again. In the past when it's been rumored, many have said it would be tricky to integrate, considering Nextel's use of iDEN and Sprint's use of CDMA. However, as Nextel is exploring its next generation options, one of the possibilities is EV-DO, which Sprint is already gearing up to offer -- making a combination much easier. Nextel also brings in a big crop of high ARPU business customers, which Nextel has always done a good job targeting. It could also bring them Boost Mobile, which seems to be the only major MVNO that isn't using Sprint's network already in the US. If this does come to pass, it will be interesting to see how Verizon Wireless responds. Verizon Wireless and Nextel haven't wasted any opportunities to snipe at each other -- and it certainly won't make Verizon Wireless happy to see Nextel picked up by an even larger rival. Derek adds: Also consider that SPCS has learned through Virgin that it may be better to outsource segment strategies than to grow them from scratch. Furthermore, high-quality PTT is critical to Nextel's ongoing success, which is why they have been working closely for years with Qualcomm and Motorola on a PTT technology called Q-Chat which works over CDMA networks. These rumors fit.
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