It seems that cellular
networks are starting to condense. After the super exposed, multiple
billion-valued BellSouth-SBC�s Cingular Wireless
& AT&T Wireless merger, there have been talks about Sprint PCS and
Nextel possibly bundling their networks, as well are Sprint�s affiliate
Alamosa Holdings, Inc. with AirGate PCS, Inc.
It has been reported that as
the rumor spreads, the transaction is currently in the works, and might
even be a done deal sooner than we think. It has even been rumored that
alert) might get
Nextel shares for a mere 1.3 shares of its own in addition of an
unknown cash amount. Industry heads say that the deal is so close to be
completed, that it only needs to be approved by Sprint�s board of
directors for it to be announced publicly.
And we are talking about a
multi-billion dollar deal here, ladies and gentlemen! When, and if the
deal is approved, completed, and announced, Sprint will have a whopping
total of a little less than 40 million customers. This deal will
definitely save a space for Sprint in the cellular carrier kingdom
currently dominated by Verizon Wireless, Cingular Wireless and T-Mobile.
�enabled phones seem to be a great added asset to Sprint PCS service
plans offering. It would also open up Nextel�s market reach to regions
like Puerto Rico, and other non- continental US possessions.
As the cellular market
condenses, there is a growing competition amongst carriers wanting to
acquire each other. The competition within the space is so brutal, that
Sprint might not even be able to complete the deal. Feisty Vodafone has
also been reportedly competing with Sprint to acquire Nextel. The
aggressive warrior was said to be outbid by Cingular Wireless when it
tried to but AT&T Wireless a few months ago.
I can�t even imagine the kind
of commotion the worldwide adoption of
VoIP will cause in the
wireless world. The development of cellular/WiFi hybrid mobile devices
will definitely create a competitive chaos in the telecom industry. It
will be interesting to see if this future competitive environment
between both industry will create some serious money saving
opportunities for mobile customers around the US, and of course other
markets around the globe.
|Johanne Torres is contributing editor for TMCnet.com and Internet Telephony magazine. Previously, she was
assistant editor for EContent magazine in Connecticut. She
can be reached by e-mail at email@example.com