Sprint Near Deal to Buy Nextel for $34 Billion

Sprint is near a deal to acquire Nextel Communications for more than $34 billion in a transaction that would further consolidate the rapidly changing telecommunications industry, according to executives involved in the negotiations.

The deal comes as the mobile phone industry faces fierce new market pressures, with competitors seeking to keep and attract customers who can jump easily from one operator to another

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I don’t suppose we should be all that surprised at the further shrinkage of the cell phone carrier field. The current economy pretty much forces companies to get as big as they can in order to save money. Just as in the K-mart/Sears merger, scale is everything.

The deal isn’t final, though. There are still a number of open questions that could cause the whole thing to fall apart like an over-ripe tomato.