Thursday, August 11, 2005

Sprint Nextel Completes Merger

Sprint and Nextel Communications completed their merger, creating a larger company with extensive nationwide spectrum, more than 44 million wireless subscribers with the highest ARPU in the U.S. On a "pro forma" basis, Sprint Nextel reported revenues of $40.8 billion for the year ending December 31, 2004. The combined company has approximately 80,000 employees with its corporate headquarters in Reston, Virginia, and its operational headquarters in Overland Park, Kansas.

Gary Forsee is the president and chief executive officer of Sprint Nextel and Tim Donahue is executive chairman of the combined company.

Sprint Nextel has begun the process of separating the operations of Sprint's local telecommunications business, including consumer, business and wholesale operations, and will seek regulatory approvals to spin off the local telecommunications business to Sprint Nextel shareholders in a tax-free transaction, which is expected to be completed in 2006. The local telecommunications business, led by Daniel Hesse, chief executive officer - designate, will have its own management team and board of directors, consisting of an equal number of designees from Sprint and Nextel. The local telecommunications business, which has approximately 7.5 million local access lines in 18 states and as of June 30, 2005 had revenues of more than $6 billion during the prior 12 months, will be the largest independent local telecommunications company in the United States. It will have commercial operating relationships with Sprint Nextel for mobile and long-distance network services, and will receive certain transitional services, including corporate support functions. Its corporate headquarters will be in the Kansas City metropolitan area.

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