Analysis of Sprint and Nextel Merger Essay

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ANALYSIS OF SPRINT AND
NEXTEL MERGER IN AUGUST 2005

TABLE OF CONTENTS
EXECUTIVE SUMMARY iii
INTRODUCTION 1
ANALYSIS OF MERGER 2
BEFORE THE MERGER 2
AFTER THE MERGER 4
CUSTOMER SERVICE SURVEY 9
CONCLUSIONS 13
RECOMMENDATIONS 14
APPENDIX 16

LIST OF FIGURES
FIGURE 1. 2005 TIMELINE OF SPRINT/NEXTEL LEGAL ISSUES 6
FIGURE 2. MARKET SHARE 7
FIGURE 3. CURRENT SPRINT/NEXTEL CUSTOMERS 9
FIGURE 4. REASON(S) FOR LEAVING SPRINT/NEXTEL AFTER MERGER 10
FIGURE 5. SATISFACTION OF CURRENT SPRINT/NEXTEL CUSTOMERS 11
FIGURE 6. CHANGE IN CUSTOMER SATISFACTION POST-MERGER 12

EXECUTIVE SUMMARY
Purposes of the Report
The purposes of this report are to (1) address the problems Sprint and Nextel incurred before the merger, (2) discuss
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In a $35 billion deal, Sprint Nextel prides itself on being able to provide innovative services and technology to a wide range of consumers, business associates, and government officials. Although Mr. Forsee has said, “This merger positions Sprint Nextel for greater success than either company could have achieved alone," there are many obstacles that Sprint Nextel must overcome in order to become the leading cell phone network provider. First, one must examine the problems with Sprint and Nextel before the merger.
ANALYSIS OF MERGER
Before the Merger
Before Sprint acquired Nextel, Sprint was ranked as the nation’s third largest wireless company as well as the third leading carrier in long-distance service (Sprint-Nextel Deal?, 2004). However, there have been many complaints against the company. For example, the company has been accused of billing problems, unauthorized charges, and rude, unhelpful customer service. Moreover, there have been complaints about coverage service areas and roaming. On the Consumer Affairs website, Sprint customers have written about their experiences with the company. In October 2002, a man from Lafayette, LA, expounds upon a time when Sprint’s customer support changed his calling plan to better suit his needs in his current situation. They had promised to a hold plan for
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