Tuesday, November 13, 2007

Rumor mill

+ Google to buy Sprint Nextel?
Now, rumor has it that Google might be interested in buying Sprint. With the search giant's mobile ambitions are on the table, it's clear that the biggest impediment to the company's success is that it must work with carriers like Sprint to get Android-powered phones running on their networks. Of course, open source scares them, so a Verizon or AT&T might be hesitant to strike deals with makers of the Google powered handsets. So what's a Web giant to do? Buy a network operator like Sprint and then spin off the phone business.

In another scenario, Google could then spin off Sprint's WiMAX business while maintaining a hefty chunk of equity in the company. It could then invite Cisco, Apple and other tech A-listers to invest in the WiMAX project, as long as everyone agrees it would operate as a wholesale wireless broadband network--each of these companies would love to break the broadband cable and DSL "duopoly."

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