ChasingBlueSky 0 #1 December 15, 2004 So there are now three major companies to choose from: Cingular, Sprint and Verizon. Then there are the smaller companies like T-Mobile. I'm wondering if this will cause charges to increase since there will be less competition? I know I am having issues with AT&T right now after the merge. They cashed my check and then turned off my phone due to an issue in their billing system. When they first merged they said we would be able to do anything tha Cingular has - but now I am being told I have to get a Cingular phone, and Cingular plan if I want to get rollover minutes or any other Cingular benefits. I wonder if it is the same for mobile to mobile calls? http://www.reuters.com/newsArticle.jhtml;jsessionid=YIEODHZ3ECDPUCRBAEOCFEY?type=topNews&storyID=7104274 Sprint to Buy Nextel in $36 Billion Deal By Sinead Carew and Justin Hyde WASHINGTON/NEW YORK (Reuters) - Sprint Corp. on Wednesday said it will buy mobile telephone company Nextel Communications Inc. for about $36 billion creating a U.S. wireless carrier with nearly 40 million subscribers. The deal would combine the No. 3 and No. 5 U.S. wireless carriers, greatly narrowing the gap with industry leaders Cingular Wireless and Verizon Wireless. Nextel has aimed its popular "push-to-talk" walkie-talkie service mostly at business consumers, who account for roughly three-fourths of its customer base. That ratio of business to consumers is flipped at Sprint, which has had a greater emphasis on retail customers and data services. Sprint and Nextel executives said they would save about $12 billion in costs and combining their two networks. Sprint plans to spin off its local telephone business to shareholders of the new company, to be called Sprint Nextel, as part of the deal. The companies had combined revenue of $40 billion for the 12 months ended Sept. 30, including about $6 billion from Sprint's local telephone business. Sprint Chairman and Chief Executive Gary Forsee said there would be job cuts, but did not provide specifics. The transaction, which is expected to close in the second half of 2005, values Nextel at $32.63 per share based on Tuesday's closing prices, representing a premium of almost 9 percent over Nextel's closing price of $29.99 on Nasdaq on Tuesday. After rising in recent days on expectations of the deal, Sprint shares fell 2 percent in Wednesday's midday trading on the New York Stock Exchange, while Nextel shares fell 1.6 percent on Nasdaq. Several analysts applauded the deal, saying it made sense for the companies and the U.S. wireless industry. "We believe that a potential combination of Sprint and Nextel makes sense on a number of measures, including spectrum position, network technology upgrade path and the complementary nature of the two customer bases," said Merrill Lynch analyst David Janazzo in a research note. PUSH TO DEAL Nextel and Sprint's first task will be merging two networks that use different technologies. Nextel CEO Timothy Donahue, who will become executive chairman of the merged company, said Sprint Nextel would offer handsets compatible with either network in 2006, and eventually move much of Nextel's subscribers onto Sprint's network. Under the terms of the deal, existing Sprint shares will remain outstanding and Nextel shares will be converted into shares of the new company and a small amount of cash, valuing each Nextel share at about 1.3 shares of Sprint Nextel common stock. The stock and cash allocation will be determined at the closing to ensure the local business spin-off is tax free, and the cash portion of the deal will not exceed $2.8 billion. At current figures, Nextel shareholders would receive about 1.28 Sprint Nextel shares and 50 cents in cash for each Nextel share, the companies said. Forsee will become CEO of the new company, while Sprint Chief Operating Officer Len Lauer and Nextel Chief Financial Officer Paul Saleh will maintain their roles at the new company. The spun-off local telecoms business is expected to pay quarterly dividends, but Sprint Nextel plans to stop paying dividends following the spin-off, the companies said. The deal leaves T-Mobile USA, owned by Deutsche Telekom AG , a distant fourth among U.S. national wireless carriers, with about 16.3 million customers. Nextel shares fell 50 cents to $29.49 in midday trade on Nasdaq, while Sprint shares fell 57 cents to $24.53 on the New York Stock Exchange._________________________________________ you can burn the land and boil the sea, but you can't take the sky from me.... I WILL fly again..... Quote Share this post Link to post Share on other sites
mattsplat 0 #2 December 15, 2004 Hope my fon stock does good. Quote Share this post Link to post Share on other sites
WFFC 1 #3 December 16, 2004 Dropped Nextel a couple weeks ago. Seems they didn't like that and sent me a bill for $723.61. Bastards. The best part is they tacked on a late fee. Funny, they charge my debit card religiously each month and it came out like clockwork. Just not happy they're closed right now so I can have a chat with them now...----- ~~~Michael Quote Share this post Link to post Share on other sites
Unstable 9 #4 December 16, 2004 I hate cell phone companies. All of them. Every last one. And their dogs, too. Right now I'm With Alltel. Last time my phone wasn't working, some cocky lady at the customer service desk refused to get me a new phone (it was insured) or even test the one I had because their records showed that I was not 18. My drivers license wasn't enough, my Birth Certificate wasn't enough, nothing would make them happy until I had my old man show up and tell them that yes, I was several years past 18. Even after that, no replacement cell phone for me, since the didn't think the damage was hardware (bull crap, half the buttons didn't work!). So, I took that puppy home, smashed it to pieces with a Hammer, put the iddy-biddy pieces in a baggie, and gave it to them. They gave me a new phone then. =========Shaun ========== Quote Share this post Link to post Share on other sites
