It is thought that the touted merger between US telecoms giant Sprint Corp and mobile phone operator Nextel Communications Inc, which would create a third-placed mega mobile operator, has piqued the interest of Verizon Communications, the largest US telephone company.
If Sprint and Nextel did merge, the combined company would be worth approximately $70 billion, with roughly 40 million subscribers, compared to the 47 million customers of market leader Cingular Wireless LLC, and the 42.1 million customers of Verizon Wireless.
Until recently, Verizon Wireless was the market leader in the US mobile market, but following Cingular’s $41 billion acquisition of AT&T Wireless Service Inc, it was knocked down into second place. Verizon has made no secret of its desire to regain its top spot from Cingular, and according to reports in the Wall Street Journal, Verizon Communications has gained the backing of its wireless partner Vodafone Group for a potential bid for Sprint.
An offer by Verizon could jeopardize Sprint’s $35 billion merger deal with Nextel, and would catapult Verizon back into the number-one slot in the US mobile market with more than 65 million customers.
Nextel is currently the fifth-ranked mobile operator in the US, and is principally known for its push-to-talk mobile phones. Sprint on the other hand is the third largest long-distance phone company in the US, and is also the number-three mobile operator.
According to the reports, Sprint’s board has met to discuss the proposed Nextel merger, and Nextel’s board also is said to be considering the tentative deal. A deal could soon be announced.
