Sprint Nextel Announces Joint Telecom Venture
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Wireless carrier Sprint Nextel Corp. (search) on Wednesday announced a joint venture with four cable operators aimed at bundling voice, data and video services, as the telecommunications industry continues to converge.
The 20-year deal is mutually exclusive for three years, and calls for a $200 million investment from the five firms — $100 from Sprint and a combined $100 million from Comcast Corp., the cable division of Time Warner Inc., (search) Cox Communications Inc. and Advance/Newhouse Communications Inc.
Together, the companies plan to package video, wireless voice and data services, high-speed Internet and cable-phone service and sell them in Sprint stores and other retail locations.
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They will also develop mobile devices that integrate cable and wireless services, offering features like the ability to merge home and wireless voicemail and to surf the Web via a home Internet connection, the companies said.
The move by the cable companies comes as telecoms Verizon Communications Inc. and SBC Communications Inc. prepare to launch pay television services.