Once upon a time, Nextel put together a nationwide system of towers that allowed contractors to maintain contact with their employees by pushing a button and turning their cell phone into a 2-way radio.
Direct Connect was an invention that filled a very empty niche.
Phones were pricey and the minutes were prohibitively expensive when Nextel started offering the service. For a flat monthly rate per phone, contractors could get in touch with employees in the field, as often as they needed, and talk as long as necessary.
Need material? Equipment failure? Truck breakdown? A potential new client asking for an estimate? Push a button, no minutes used, and the work get done more easily than before.
You couldn't go anywhere without hearing the distinictive chirp that announced the call. Wherever contractors gathered, one chirp and they'd all lunge for their phones.
In time, technology outpaced Nextel's ability to evolve and the firm's ability to afford a massive upgrade. Enter service provider Sprint to rescue a struggling corporation, with bold proclamations of improvements to come, new cell towers, better service, clearer calls, etc. etc.
The familiar chirp was soon replaced by an annoying buzz and an error message that declared "User Not Available". Even if that user was sitting right next to the person trying to contact them.
Contractors found that the service went downhill after Sprint launched their so-called upgrade, and they bailed. Verizon came out with their version of the 2-way radio and tradespeople switched carriers. Stock in Sprint fell and fell again, becoming nearly worthless.
Underperforming stocks to be had on the cheap are juicy targets for take-over, so it comes as no surprise that Dish Network is looking at buying up Sprint. It would allow them to bundle their satellite television and internet service with phones, and put them in a better position to compete with AT&T and Verizon.
Japan's SoftBank Corp made an offer to buy Sprint earlier in the year, and Dish Network topped it. Sprint shareholders, their holdings already battered by mismanagement, would be more amenable to the higher offer and be happy to get out from under a bad investment. If SoftBank Corp really wants Sprint, they'll have to offer more. Whether they think the struggling wireless provider is worth more remains to be seen.
Beyond the larger pay-out for the shareholders, however, is the merging of cultures when two large corporations become one. Dish Network is a natural fit with Sprint. Satellite reception is spotty during storms, not unlike Sprint's spotty Direct Connect service. It sounds like a perfect corporate marriage.
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