The Anonymous Analyst

Commenting on technology & communication issues around the world with focus on USA and India. Also ramblings on other subjects.

Sunday, December 12, 2004

Sprint-Nextel Merger

Sprint and Nextel are merging as reported. In this mature market consolidation is the name of the game - the existing players can only grow by joining up. This leaves Verizon, Cingular, Sprint-Nextel and T-Mobile as US's leading wireless players.

What would have happened if they remained separate:
  • Sprint was trying to get in bed with the Cable Providers - so that they could provide "Quadraple Play" services. This might have happened and it would have improved their fortunes.
  • Nextel was facing the technology upgrade choice and they most probably would have picked up CDMA2000 EVDO - then there would have been 3 CDMA players - Nextel, Verizon and Sprint.

What now

Sprint-Nextel might still work with the Cable MSOs. Qualcomm and CDMA is the big winner since 3 of the top 5 are CDMA plays - the CDMA providers have a good corporate customer base, better technology and stabler companies. Amdocs might also be a winner since Nextel has a very good systems and the combined company will do good to adopt those systems.