Sprint in Talks to Sell Struggling Nextel Unit

The consensus: 'Ma Bell is back'

(NEWSER) - Reactions to the surprise AT&T-T-mobile merger are pouring in, and, not surprisingly, most conclude this isn't a good thing for consumers:

• The Bell telephone system—"aka AT&T"—was broken up in 1984 to increase competition, and the US telecommunications market was deregulated in 1996, again to increase competition. But this merger "effectively restores Ma Bell to her former girth yet allows the company to operate in a looser regulatory environment," writes David Lazarus in the Los Angeles Times . "Consumers might wonder if they've been played. ... Ma Bell is back," and the only thing left for federal regulators to do is instill "new rules that address the shortcomings of our failed experiment in deregulation."

Monthly fee for unlimited calls, text and data marks new low in wireless service

(NEWSER) - A new prepaid calling plan from Sprint’s Boost may spark a price war in the wireless market, USA Today reports. Boost will offer unlimited calling, texting and web browsing for a flat $50 a month fee. The plan may prove so attractive to cash-strapped wireless customers Boost could start taking customers away from the bigger telecoms—maybe even parent company Sprint. More»

Struggling telco's CEO seeks suggestions for improvement

(NEWSER) - You won’t get Sprint Nextel CEO Dan Hesse if you email “Dan@Sprint.com,” but you will get the company’s attention, reports the New York Times. In an ad campaign designed to get Sprint in touch with its customers, Hesse asks “If you could change the way wireless companies did things, what would you do?” The address then appears on the screen. More»

So much for goodwill: $31B in losses pegged to Nextel merger

(NEWSER) - Sprint Nextel says it may write off up to $31 billion related to the merger that created the combined company. The move comes just after a regime change at the company, which has struggled since the 2005 merger, and lost about 1 million customers last year. The write-off, accounting for most or all of the “goodwill” from the merger, will probably mean a big Q4 loss, reports the Washington Post. More»

They yank application from FCC but haven't given up on the deal

(NEWSER) - AT&T and T-Mobile have unexpectedly withdrawn their merger application from FCC consideration. While the move hints at trouble for the $39 billion deal, the companies say they’re not giving up, Politico reports. Instead, they’ll focus on getting approval from the Justice Department—either by winning an antitrust lawsuit against the proposed deal lodged by the department or through a settlement. Still, AT&T is, for the first time, acknowledging that things could go wrong for the deal. More»