Thank you, Reuters for the info -
Bottom line? My lay opinion is that selling off Nextel would give Sprint much-needed cash as well as the ability to focus solely on improving the CDMA network and building out WiMax without the distraction of trying to figure out how to integrate the iDEN users as well.
Strangely absent from any buyout rumors is SouthernLINC. SouthernLINC Wireless is a regional iDEN carrier. In fact, their handsets are identical to Nextel's iDEN handsets. It would make sense for Sprint to offer them a sweetheart deal to take iDEN off their hands. Selling to SouthernLINC would be great for customers on both sides: Nextel customers would notice almost zero change except for the name on their bill and SouthernLINC would leap onto the national stage and become, almost overnight, a major player. If they could extend their reputation for reliability (they were back up and running only 72 hours post-Katrina) onto the national stage...Verizon's claim to fame would be in serious jeopardy.
NEW YORK (Reuters) - Sprint Nextel Corp is considering spinning off or selling its Nextel unit, The Wall Street Journal reported on Monday, quoting people familiar with the situation.Well, this would certainly be the easiest way for Sprint to abandon its iDEN network. It makes sense to sell of the Nextel part of Sprint Nextel as a quick(er) and (relatively) easy way to solve the concerns of trying to merge two incompatible networks. They could potentially give current iDEN users the option of getting into a CDMA device on the cheap or moving over to the new provider. Of course, that's if the new owner actually maintains the network for consumers. If one potential buyer gets his way (which is of course if Sprint decides to sell) the network could become a new haven for public safety organizations.
The report said Cyren Call, a company founded by Nextel founder Morgan O'Brien, is trying to assemble a consortium of investors to acquire Nextel.Cyren's mission is to provide better communication for the nation's First Responders so that they can better react and communicate.
Bottom line? My lay opinion is that selling off Nextel would give Sprint much-needed cash as well as the ability to focus solely on improving the CDMA network and building out WiMax without the distraction of trying to figure out how to integrate the iDEN users as well.
Strangely absent from any buyout rumors is SouthernLINC. SouthernLINC Wireless is a regional iDEN carrier. In fact, their handsets are identical to Nextel's iDEN handsets. It would make sense for Sprint to offer them a sweetheart deal to take iDEN off their hands. Selling to SouthernLINC would be great for customers on both sides: Nextel customers would notice almost zero change except for the name on their bill and SouthernLINC would leap onto the national stage and become, almost overnight, a major player. If they could extend their reputation for reliability (they were back up and running only 72 hours post-Katrina) onto the national stage...Verizon's claim to fame would be in serious jeopardy.
Alex, don't forget that a) Cyren Call was one of the bidders in the failed D Block (public safety) auction. Also, iDEN operates on spectrum that is supposed to be vacated pretty soon (for First Responders), and there have been no signs of Sprint wanting to.
Spinning off Nextel to Cyren Call (and converting their non-Government customers to CDMA) would allow CC to offer dedicated service to police, EMS, etc, while the D block is re-auctioned.