Before acquiring Alamosa, Sprint Nextel Corporation was involved in some litigation issue with one of Alamosa Holdings' subsidiaries, AirGate PCS Inc. Therefore, completing the Alamosa acquisition brought final resolution in this matter. Alamosa was one of Sprint's most important affiliates before the merger with Nextel and the acquisition of this wireless affiliate. Texas based Alamosa Holdings provides Sprint PCS services in 19 states across the United States, and it has about 1.5 million direct wireless subscribers. The affiliate has approximately 1,300 employees. In 2005, Alamosa Holdings' revenues reached $1.32 billion. The most important outcome of acquiring Alamosa Holdings was the fact that the acquisition extended Sprint Nextel Corporation's direct service territory to an additional 20 million people in 19 states.
Another wireless affiliate that was acquired by Sprint Nextel is Enterprise Communications Partnership. The acquisition was completed in December 2005 but it was officially made public in January 2006. Enterprise Communications Partnership was also a PCS affiliate before the acquisition. This acquisition was estimated at approximately $98 million, which included the assumption of debt (Sprint Nextel, 2006). Sprint Nextel was also in litigation with Enterprise Communications Partnership before the acquisition, which terminated the litigation matter, exactly like in Alamosa Holdings' case discussed above. Columbus-based Enterprise Communications Partnership activates on the PCS services market in Georgia and Alabama. The company has approximately 80 employees. Enterprise Communications' revenues in 2005 reached approximately $54.3 million. For Sprint Nextel, the most important outcome from acquiring Enterprise Communications Partnership was gaining about 52,000 direct wireless subscribers, and expanding its direct service territory to cover an additional 825,000 people.
Sprint Nextel Corporation made another affiliate acquisition in the beginning of 2006. This time, the corporation completed the acquisition of Velocita Wireless. After the acquisition, Velocita Wireless was intended to activate as a Sprint Nextel subsidiary using some of the company's 900 MHz spectrum to supplement Sprint Nextel's capacity and coverage for the company's iDEN-based Nextel National Network (Sprint Nextel, 2006). This acquisition was welcomed both by Sprint Nextel and Velocita Wireless officials.
The acquisitions process did not stop here. In June 2006 Sprint Nextel Corporation officially announced that the company had completed the acquisition of Nextel Partners. This acquisition was estimated at approximately $6.5 billion. This amount of money represented $28.50 per share of Nextel Partners Class a Common Stock (Sprint Nextel, 2006). Before this acquisition Sprint Nextel owned about 31% of Nextel Partners common stock. The most important outcome for Sprint Nextel Corporation was the fact that after this acquisition the company started to control licensed wireless spectrum in 58 additional markets. Also, after the acquisition, Sprint Nextel reached approximately 54 million additional people in mid-sized and rural markets in 31 states. After this acquisition, Sprint Nextel was estimated to have approximately 51 million wireless subscribers. The Sprint Nextel Corporation President was in complete favor of this acquisition, as he stated that: "the acquisition of Nextel Partners marks another important milestone as Sprint Nextel executes our vision of converging our unique wireless and Internet wireline assets to create an entirely new suite of mobility and IP-based products and services for our customers. With this acquisition, and the expanded Nextel iDEN network footprint, we will be able to offer customers in Nextel Partners' territories the full range of products and services more quickly and efficiently, and we will benefit from managing this part of our business under a consolidated organization and cost structure" (Sprint Nextel, 2006). The acquisition of Nextel Partners by Sprint Nextel Corporation was intended to make no difference for the former Nextel Partners' clients, as all existing sales and customer service channels will not be modified. However, former Nextel Partners' subscribers and support functions will be gradually integrated into the company's existing operations. The Federal Communications Commission (FCC) approved the purchase and transfer of over 6,000 licenses in June 2006. Also, this transaction received all the necessary approval from any organisms involved.
Another wireless affiliated was acquired in July 2006. This time, Sprint Nextel Corporation acquired UbiquiTel Inc. The acquisition was a complete success. The transaction was all-cash and was estimated at approximately $1.3 billion, which included the assumption of about $300 million of net debt. In this case also there were litigation issues between Sprint Nextel and UbiquiTel Inc. Like in the above mentioned acquisition cases, this acquisition also brought final resolution to these litigation issues. The Conshohocken-based UbiquiTel Inc. was intended to provide print PCS services in mid-sized markets located in California, Idaho, Indiana, Kentucky, Nevada, Tennessee, Utah, Washington and Wyoming, covering 8.3 million people (Sprint Nextel, 2006). UbiquiTel Inc. has approximately...
The Sprint PCS address all kinds of customer categories. This fact is shown by the product's commercial also. In the ad, the people participating in the successful wireless emailing are representative for all age groups, genders, they seem to have different professions, different levels of education, different types of jobs. Their appearance also reveals the diversity of the targeted customers. The commercial shows business managers, wearing suits, pensioners, housewives, students, young
The high competition rate in the industry necessitates fast and numerous new developments. Nextel Communications Inc. can much more valuable spend its time and money by investing in new ideas. Court cases take time and energy, while also being highly detrimental to the creative process. In this way, losses are incurred not only in terms of legal fees and work hours, but also in terms of creativity and new products
AT&T & T-Mobile merger. In order to analyze this move properly, we will compare this merger with a case study of the merger of Frito-lay and Pepsi to create PepsiCo. At that time, the federal government of the United States was much more supportive of corporate mergers than currently. Without such hostility at the time to hinder it, the PepsiCo company has grown into a very competitive, innovative and healthy
This company's reach extends across the vast properties of the two companies from which it originated. America Online brought its flagship online service, Netscape, and several interactive services to the merger. The threat of new competitors can be applied to the telecommunications industry in that new competitors will always emerge, as more companies are sure to be formed. The threat of substitutes can be applied to the medium of
Goldenline Market Plan Golden Line will prove to the business community that it is the most prestigious technology firm in the industry. With an increase in technological advancement, Golden Line will pave the way for the future in the electronics industry. Golden Line intends to dominate the mobile phone industry by launching unbelievable items. The company's smart phones will be incomparable to competition with Motorola and Samsung. The new products will
Failures of Merger Failure of Mergers The objective of this study is to examine why it is that most mergers fail and will provide real-life examples of the failure of mergers. Toward this end, this work will examine relevant literature in this area of study and specifically academic and professional literature and publications that are peer-reviewed in nature. The work of Weber and Camerer (2003 ) entitled "Cultural Conflict and Merger Failure:
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