THE NEXTEL BRAND HISTORY
Nextel Communications, Inc. was a wireless service operator that traces its roots to the 1987 Foundation of Fleet Call which changed its name to Nextel Communications, Inc. in 1993.
Nextel provided digital, wireless communications services, originally focusing on the fleet and dispatch customers, but later marketed to all potential wireless customers. Nextel’s network operated in the 800-MHz Specialized Mobile Radio band and used iDEN technology developed by Motorola.
Nextel’s iDEN network offered a then unique push-to-talk “walkie-talkie” feature in addition to direct-dialed voice calls. Nextel was one of the first providers in the United States to offer a “national digital cellular coverage footprint”.
At the time of its 2005 merger with Sprint Corp., Nextel had over twenty million dedicated subscribers in the United States and served 198 of the top 200 markets. By 2013 Sprint Nextel Corporation had a market value of over $30 Billion Dollars.
THE ABANDONMENTOF THE NEXTEL BRAND
- In late 2010, Sprint Nextel Corporation publically announced plans to decommission the Nextel iDEN network.
- On May 30th, 2012, Sprint Nextel publically announced that it would shut down the Nextel iDEN network at 12:01 am on June 30th, 2013. On July 1st 2013 over 20 million unhappy Sprint Nextel Corporation subscribers lost their telecommunications services and their cellular devices no longer were operable.
- On or around March 21st 2015 it was publically announced that Sprint Corp has agreed to a $131 million settlement of a class-action lawsuit accusing the third-largest U.S. wireless carrier of defrauding investors about problems dating back to its $36 billion merger with Nextel Communications Inc. in 2005.
- The all-cash settlement made public on Monday resolves claims that Sprint, former Chief Executive Gary Forsee and other officials fraudulently inflated the company’s stock and bond prices between October 2006 and February 2008. Investors said the defendants falsely touted that Sprint was receiving billions of dollars of benefits from the merger and improving its subscriber base by tightening credit standards. Instead, investors said Sprint was struggling to integrate its cellular networks and was losing hundreds of thousands of subscribers, culminating in a $29.7 billion goodwill write down in February 2008.All of the defendants denied liability in agreeing to settle the 6-year-old lawsuit, according to settlement papers filed with the federal court in Wichita, Kansas.
- The preliminary accord requires court approval. Sprint spokeswoman Stephanie Vinge said the Overland Park, Kansas-based company settled to avoid the cost and distraction of litigation. “Sprint has and will continue to operate in complete adherence with all federal securities laws,” she added.