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affiliate posts

Sprint Nextel still cleaning up merger mess, buys another affiliate

by Chris Ziegler posted Jun 13th 2007 @ 2:00PM

Amazingly, Sprint's still trying to keep pace with scrappy regional affiliates miffed in the aftermath of its merger with Nextel; in many cases, the clear-cut violations of the non-compete clauses in place with the regionals have left the company with no option but to buy them. Latest in the affiliate roundup is Northern PCS Services in a deal valued at $312.5 million, ending the war of words (and lawyers) that presumably would've ended with an even larger payout for the affiliate after years of drawn-out courtroom proceedings. Though Sprint's gotta feel good about putting another looming drama behind them, iPCS is still out there lying in wait; no indication yet on whether Sprint's feeling a buyout there, too. Look for the Northern deal to close in Q3.

Court rules in favor of Midwestern Nextel spinoff

by Chris Ziegler posted Aug 17th 2006 @ 12:39PM

The endless barrage of legal fallout resulting from Sprint Nextel's merger continues, the latest onslaught coming from iPCS, a Sprint affiliate operating throughout much of the Midwest. According to Cook County Circuit Court in Illinois, the merger violated Sprint's agreement with iPCS to not infringe on their territory (a common theme in affiliates' lawsuits) and is demanding that Sprint file a plan for divesting itself of its Nextel operations in Illinois, Michigan, Iowa, and Nebraska by September 6. Naturally, Sprint intends to appeal "vigorously," though as in so many other cases, an acquisition ultimately seems possible -- if not probable.

Sprint Nextel swallows affiliate UbiquiTel

by Chris Ziegler posted Jul 6th 2006 @ 11:42PM

In a move that surprises absolutely no one keeping up on the aftermath of Sprint Nextel's merger, the acquisition of Sprint affiliate UbiquiTel has closed this week in an all-cash transaction valued at $1.3 billion. In exchange for taking on UbiquiTel's $300-odd million of net debt, Sprint Nextel adds an additional 452,000 direct subscribers and gains territory in 9 states for a total of roughly 8.3 million in population. Even better, they avoid the wrath of yet another affiliate miffed by the non-compete clause busting merger, which added Nextel territory to many areas serviced by Sprint affiliates and vice versa. With the billions Sprint has now shed on affiliate buyouts, mergin' ain't as cheap as it used to be, it seems.

[Via The Wireless Report]