Filed under: Industry

Alltel Wireless, the private mobile telephone services company that just keeps on grinding along really well, added just over one million new subscribers to its ranks in the company’s most recently completed quarter. This is a number often seen by larger competitors like AT&T, Inc. (NYSE: T) and Verizon Wireless, but not by the fifth-largest cellular carrier in the U.S.

It’s odd that larger carrier Sprint Nextel Corp. (NYSE: S), which uses the same technology as Alltel, lost over a million customers in its most recent quarter. In fact, it seems the top five cellular carriers in the U.S. are all experiencing growth — except Sprint Nextel. I mean, is Sprint Nextel’s service that bad compared to fellow carrier Alltel? Must be, since customers are leaving in droves. Sprint didn’t say whether it was Nextel customers who left in huge numbers or Sprint customers. You see, the merger between the two companies, which is a complete disaster, relied on a fusion of two incompatible technologies that never happened.

Why haven’t Sprint and Alltel decided to come together? The companies use the same technology and some areas would have to be divested, similar to areas AT&T had to sell when it merged with Cingular Wireless years ago. Still, Sprint Nextel needs a lifeline and CEO Dan Hesse has one monumental task in front of him. Having a laggard company join with a company that’s smaller — but growing much more rapidly — would not be a bad thing. That is, if he can convince Alltel’s owners that perhaps a merger between the two companies would be a good thing.

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This entry was posted on Monday, May 26th, 2008 at 11:08 pm and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.