MediaFile

While the rumor mill has been heating to a frenzy over whether and when Verizon Wireless will get its hands on iPhone,  Sprint Nextel has quietly found its own way to associate its brand with Apple’s i-empire, in the form of a wireless case for the iPod Touch. 

On Sunday Sprint will start selling  Peel,  a ZTE-made  case for the iPod Touch, that will connect the device via Wi-Fi to its cellular network.

This means Sprint customers will be able to connect their iPod Touch to the Internet via Sprint’s cellular network rather than depending on Wi-Fi, a short-range wireless technology that is widely installed in places such as coffee shops or airports but more limited in coverage than cellular networks.

The iPod Touch is no phone but since it is possible to use Skype’s Internet telephone service on Wi-Fi devices like iPod Touch, then it could also be use for making calls on the Sprint network.

The device costs $79.99 to buy and comes with a $29.99 a month data service fee but does not require the purchaser to sign up for a contract.

It beggars belief that humbled telecom equipment supplier Alcatel-Lucent could be scooped up by a Chinese rival with nothing better to do. Huawei or ZTE seem credible candidates. The question is, why would they ever bother?

That didn't stop shares of Alcatel-Lucent from rocketing up as much as 21 percent on Wednesday on rumors of an unnamed suitor. Momentum was helped by a rating upgrade on the depressed stock by French broker Natixis. The shares later settled back somewhat to trade at 2.75 euros, up 12 percent on the day in Paris.

Why would a Franco-American company that is widely considered a failed example of industry consolidation be doing the same thing over again, but with the added complexity of China in the mix?