Nextel Cellular Service Plan - Nextel And Sprint - What’s The Difference?

Of the many different wireless communication companies available, it is easy to see why so many cellular customers are becoming confused. Keeping up with the companies and their varied service plans can be a difficult task, particularly to those who are unfamiliar with cellular phones and how their service programs work. Throw in the fact that so many wireless communication companies are forming mergers and buying each other out, and it can become even more confusing. Even the Nextel cellular service plan is a plan that has left some feeling a bit boggled.

History of Nextel

Nextel, which was originally called FleetCall, was founded in 1987. By 1993, its name had been officially changed to Nextel and the company began dabbling in wireless communications in 1995. In 2004, the company started another major change when it announced it would be merging with Sprint.

The merger of Sprint and Nextel was reported as an equal merger. In reality, Sprint Corporation purchased Nextel Communications outright. Nonetheless, the resulting company named itself the Sprint Nextel Corporation. At the time of the merger, Sprint was the number 3 provider of wireless communications services in the United States and Nextel, with its unique walkie-talkie Nextel cellular service plan, was number 5.

The shareholders of both Sprint and Nextel approved the merger, which was approved in August 2005 by the FCC and the US Department of Justice, without a hitch. The Sprint Nextel Corporation was officially formed that same month. Unfortunately, Sprint and Nextel have both faced difficulties as a result of the merger. These problems have mostly been from regional affiliates who formerly provided either Sprint or Nextel cellular service plans to customers in their region. With the merger, these affiliates believe their non-compete agreements have been violated. In fact, one affiliate made such a strong case that Sprint Nextel made a settlement and agreed to not provide Nextel cellular service plans in that area. The future remains to be seen as more affiliates continue to file lawsuits.

What the Spring Nextel Merger Means to the Customer

For the customer currently with a Sprint or Nextel cellular service plan, the merger probably won’t have much effect until 2010. This is because Sprint Nextel continues to offer both Sprint and Nextel cellular service plans separately. In 2010, however, Sprint Nextel intends to absorb the Nextel brand completely.

The Nextel cellular service plan also continues to be unique because it uses a specialized mobile radio band, or SMR, to provide its services. Because of this technology, the Nextel cellular service plan is capable of featuring an innovative push to talk feature. In this way, the Nextel cellular phone can act as both a cellular phone and as a walkie-talkie. On the downside, Nextel phones tend to be bulkier than many of the sleeker designs in order to maintain this technology.

Current Nextel cellular service plan subscribers, which number approximately 16.1 million in the United States, do not have to replace their Nextel equipment. This is because Sprint Nextel has managed to find away to merger the technology used for both Sprint and Nextel to allow for a smooth transition to its customers.

Source: en.wikipedia.org/wiki/Nextel