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FCC Clears Sprint, Nextel Merger

August 4, 2005
The Federal Communications Commission has unanimously approved the $36 billion union between wireless phone providers Sprint and Nextel. With the Justice Department’s failure to find any anti-trust issues to pursue, the FCC action was the final hurdle for the deal, which solidifies Sprint’s position as the U.S. third largest wireless company.

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The FCC said the merger would lead to better service and a faster rollout of advanced services. In fact, the only condition the commissioners placed on their approval was Sprint’s commitment to begin offering service in the 2.5 (GHz) band by 2009.

The new company, which will be called Sprint Nextel, also intends to spin off to its shareholders Sprint's local telecommunications business following the merger.

Executives at both Sprint and Nextel said the merger combination will allow Sprint Nextel to:

• Offer digital wireless service in all 50 states, Puerto Rico and the U.S. Virgin Islands. Sprint Nextel and its affiliates and partners cover a total domestic population of 262 million.
• Provide consumers more choice through investments in wireless multi-media, web browsing, messaging, gaming and music on the go.
• Provide integrated wireless and IP-based wire line solutions to business.
• Improve customer service and sales performance through joint capabilities.
• Invest to deploy next-generation wireless data services.
• Improve wireless network quality and coverage.

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