The telecom giant formed from the merger of Sprint (Quote, Chart) and Nextel (Quote, Chart) will be known as Sprint, but the Nextel name won't disappear altogether.

"The companies are in the enviable position of possessing two incredibly valuable brands with overwhelming positive and powerful equity in the marketplace," Mark Schweitzer, designated chief marketing officer for the new company, said in a statement.

The Nextel name will be affixed to a line of business-oriented products and services, including the instant, nationwide, digital walkie-talkie service.

Services sold under the Nextel brand will be aimed at selected businesses and government among others.

Sprint and Nextel announced their intention to merge in December. The deal is expected to close in the third quarter of this year pending approval from shareholders and regulators.

Executives expect $12 billion in synergies from the combined company, mainly from their wireless networks and operations. The company will maintain executive headquarters in Nextel's Reston, Va., building, and operational headquarters in Sprint's Overland Park, Kan., facility.