December 16, 2004
Merges are good for Wall Street but often customers suffer
I'm sure many investors are cheering the Sprint/Nextel merger but what about customers - will they suffer? Will they flock to Verizon - which has great customer service? Often times merges leave the two merging companies open to even more direct attack from single companies - IBM/Lenova - Dell's hungry. Sprint/Nextel & ATT/Cingular - Verizon's hungry
The Associated Press writes For the combined Sprint Nextel to take full advantage of the merger, a lot of infrastructure ? the base stations and other equipment that carries calls ? would have to change. In addition, customers would have to get new phones.
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