Sprint Nextel Corp's proposed $483 million merger with Virgin Mobile USA Inc received antitrust clearance, ... Smartphone News forum
Sprint-Virgin Mobile deal gets U.S. antitrust nod
Sprint Nextel Corp's proposed $483 million merger with Virgin Mobile USA Inc received antitrust clearance, the U.S. Federal Trade Commission said on Monday.
In July, Sprint said it planned to buy out small wireless carrier Virgin Mobile in a deal that pushes Sprint, the No. 3 U.S. mobile service provider, deeper into the low-end prepaid mobile market.
While Sprint already rents space on its network to Virgin Mobile, some analysts were puzzled by its decision to buy the small carrier. Sprint already has its own prepaid unit, Boost, which offers consumers unlimited calls for a set monthly fee.
The deal will make Sprint more exposed to the toughest part of the prepaid market, in which customers pay in advance for calls on a per minute basis.
Analysts said the deal could be an indication that Sprint was having a difficult time turning around its main postpaid business, which serves high-value customers who pay monthly bills. Sprint is set to report quarterly results on Wednesday.
Wow. Sprint seems to be snow ballig downward. I wont be surprised if it goes from post paid to an all pre paid provider. Great post.