The Federal Communication Commission (FCC) has approved Sprint – Nextel merger deal that encourages Sprint's position as the No. 3 wireless company in the United States.

The commission's chairman, Republican Kevin Martin, “This action will ensure that consumers continue to receive the benefits of wireless competition, such as reduced prices and increased coverage. In addition, consumers can expect improved service quality and more advanced services.”

A Democratic commissioner, Jonathan Adelstein said the companies promised to provide their wireless broadband services to at least 30 million people in large and small markets.

After mixing the new company will have more than 40 million wireless customers and $40 billion in annual revenue. It will present strong competition for Cingular Wireless and Verizon Wireless, the market leaders.

Gene Kimmelman, senior policy director at Consumers Union said, “The good news is that the merged companies should be able to better compete against Verizon and Cingular. The bad news is that we may have lost the opportunity to also preserve enough spectrums for a fourth strong competitor in this market.”

Shareholders of both the companies have already approved the merger. The combination will give Sprint access to Nextel's 15.3 million subscribers.

Officials said there will be some discharges and the combined company is expected to have about 60,000 employees, almost equal to the companies' current numbers.