December 13, 2004

Motorola Stands to Lose from Nextel Sprint Merger

Analysts are expecting the Nextel Sprint merger to hurt Motorola the most. Nextel's platform is the proprietary iDen. The combined company would have a much eaiser time switching the Nextel network to Sprint's CDMA due to lower costs and a better upgrade path. Unfortunately for Motorola which was the exclusive supplier to Nextel, this means Sprint's suppliers are likely to gain major share. They include Qualcomm, Lucent, Nortel, Samsung, and Audiovox.