Wednesday, December 15, 2004

Sprint Nextel deal confirmed

Sprint to Buy Nextel in $35 Billion Deal. If regulatory approval follows the same nine month path as the Cingular/AT&T Wireless deal, the buyout should close in the second half of 2005.

This solves Nextel's 3G deliberations with them almost certain to move their 15.3 million subscribers to Sprint's future 1xEV-DO network. This will be at the expense of Flarion Technologies' Flash-OFDM. Sprint have already begun their 3G rollout in the hope that this is completed by 2007.

In the shorter-term Motorola agree to make dual-mode phones to bridge Sprint Nextel's incompatible CDMA/iDEN networks.

More details regarding their plans:

Note the following timetable:

Co-location work to start in 2005, but little will change as they await approval – they’ll concentrate on making Sprint’s 1.9GHz network interoperable with Nextel’s 800 MHz, “as well as drafting up site-sharing arrangements”. Co-location work will continue in 2006 with Nextel pushing the plans to move iDEN over to CDMA. This will continue through 2007. Sprint Nextel will then develop VoIP across the cdma2000 1xEV-DO network during 2008. Sprint Nextel expect 14,000 Nextel cell sites will host CDMA equipment by 2008.

Sprint Nextel have an official merger site:

Of particular interest is the Investor briefing and page 13 in particular.

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