Sprint and Nextel's plans for a "merger of equals" will recast the US wireless competitive landscape, creating a new number-three player that could have far reaching effects on rivals, customers, partners and equipment suppliers.

The deal highlights the continued consolidation within the US wireless sector following Cingular's $41bn acquisition of AT&T Wireless in October. It also reflects the challenges facing mobile carriers in the US as they gear up to begin deploying third-generation technologies.