TELECOM Digest OnLine - Sorted: Will the Sprint/Nextel Merger Bring the End of Motorola?

Will the Sprint/Nextel Merger Bring the End of Motorola?

John Stahl (
Tue, 14 Dec 2004 07:02:43 -0500

Just like the phrase often heard: "The check's in the mail." The oft
used of late in most every merger and/or acquisition, phrase has been:
"This acquisition or merger will have absolutely no effect on operations."

This phrase has been shown to be, in almost every case, untrue as the
reports all indicate!

Here is another by-product of another upcoming telecom industry
merger, coming to light before the completion, which could very well
be ... "the straw which breaks the 'camel's' back for Motorola."

As a side note, one might also wonder as with the recent announcement
from Cingular that quite a large number of (redundant?) AT&T Wireless
workers will be let go, how many Nextel workers will be getting pink
slips from Sprint?

> Motorola May Lose Big Customer if Nextel Merges

> Published: December 14, 2004

> Sprint's negotiations to buy Nextel have ignited fears that Motorola will
> lose its exclusive deal to supply phones and equipment to Nextel.

> If a merger occurs, she (Ms. Kalla) and other industry analysts say,
> Sprint will induce Nextel's more than 15 million subscribers to turn in
> their handsets, which use an unconventional technology called iDEN.

> Sprint is likely to encourage these customers to buy its handsets, which
> use a more common technology known as C.D.M.A., or code division multiple
> access. And to handle the influx of millions of extra customers, Sprint
> will probably have to order more equipment from Lucent, Nortel and other
> vendors.

> Ms. Kalla said she expected Sprint to take as long as five years to shut
> down the iDEN network, giving it time to expand its C.D.M.A. network
> without pressuring Nextel customers to swap handsets.


Complete article at NY Times web site (free registration required):

John Stahl
Aljon Enterprises
Telecom/Data Consultant

[TELECOM Digest Editor's Note: You see, the phrase 'no change in
operations' is true to them ... none of them realize what miserable
screw ups they are where customer service is concerned. When they
say 'no change in operations' that's what they mean. PAT]

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