WASHINGTON-The Federal Communications Commission appears close to approving the proposed $35 billion merger between Sprint Corp. and Nextel Communications Inc., though it remains unclear whether the agency will impose any conditions on the deal as consumer groups and community technology centers have advocated.
The Wireless Telecommunications Bureau last week sent a staff recommendation to FCC Chairman Kevin Martin in favor of the Sprint-Nextel combo, according to a source close to the matter. Reuters, citing an anonymous source, reported that Martin is circulating the staff proposal to the other three commissioners. Fred Cambell, identified as Martin’s wireless adviser, did not return a call for comment.
Sprint and Nextel declined to comment.
FCC records indicate Sprint Chairman Gary Forsee and Nextel President Timothy Donahue and their lobbyists met with Martin and Sam Feder, acting general counsel and previously wireless adviser to the FCC chairman. The Martin meeting followed visits by Forsee and Donahue to other FCC commissioners in late June.
Sprint PCS would remain the No. 3 mobile-phone operator if the Nextel acquisition is approved, but the merger would strengthen its ability to compete with Cingular Wireless L.L.C and Verizon Wireless .
It was always expected that the FCC would approve the deal. The only lingering question is what, if any, conditions and/or divestitures the agency and Justice Department might require. The Justice Department last week called for the sale of licenses in three states before it would approve a smaller deal between Alltel Corp. and Western Wireless Corp.
