Qualcomm Inc (QCOM)

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Sprint-Nextel tie-up looks more likely-WSJ
Thu Dec 9, 2004 05:55 AM ET

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=7038726

NEW YORK, Dec 9 (Reuters) - Wall Street is speculating that a merger between Nextel Communications Inc. (NXTL.O: Quote, Profile, Research) and Sprint Corp. (FON.N: Quote, Profile, Research) is becoming more and more likely, the Wall Street Journal reported on Thursday in its Heard on the Street column.
A merger would enable Nextel, the No. 5 U.S. mobile provider, to have access to more radio-wave spectrum which is necessary to transmit wireless phone calls, the newspaper said. It added that a planned network upgrade by Nextel could lead to the adoption of the CDMA technology that Sprint, the No. 3 provider, already uses.

The combination would also form a wireless carrier that would be big enough -- with about 38.5 million subscribers -- to rival industry heavyweights Cingular Wireless (SBC.N: Quote, Profile, Research) (BLS.N: Quote, Profile, Research) and Verizon Wireless (VZ.N: Quote, Profile, Research) (VOD.L: Quote, Profile, Research) , according to the Journal.

It also said that Nextel seriously discussed the idea of buying AT&T Wireless Services Inc., before it was bought by Cingular earlier this year, and that its executives talked about bidding for Sprint though that has yet to happen, a person familiar with the matter told the paper.

A potential deal could involve Sprint spinning off its land line business so that a combination between Nextel and Sprint would be a pure wireless company, the Journal cited one Wall Street banker as saying.

Nextel and Sprint were not immediately available for comment.

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