Shenandoah Telecommunications entered into an agreement with Sprint (S) at the same time. Hyde had overseen dramatic moves by the company, including its decision in late 2010 to split up its wireline and wireless divisions.
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As part of the expansion of the network, Shentel is committed to adding an additional 150 coverage sites, which will provide an enhanced and more complete network for Sprint customers. The decommissioning of services is set to include the closing of retail operations and transfer of approximately 180,000 current subscribers in those markets to “another carrier”.
NTelos is in the process of exiting from its Eastern Markets. We are very appreciative of the loyalty of our customers and proud of the dedication of our employees to the NTELOS brand. We believe these investments will enable us to increase our market share, ultimately leading to greater operating efficiency and profitability. NTELOS 52 week high was $13.25.
In concert with the NTelos deal, ShenTel and Sprint have agreed to exchange certain assets in nTelos’ Western area.
The company is a regional provider of digital wireless communications services to consumers and businesses primarily in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky.
Shentel’s expanded affiliate agreements with Sprint call for Sprint to pay Shentel up to United States dollars 252 million over 5 to 6 years, with a reduction in Sprint’s retained revenues in consideration for spectrum and customers. The deals essentially give Shentel responsibility for expanding the LTE network in the nTelos service area, and will give Sprint access to more spectrum.
As a result of the nTelos sale, Sprint will gain 297,500 customers to its brand in the south eastern U.S., the vast majority of which will be affiliate customers; the telco said it anticipates moving all its retail customers in the nTelos territory to Shentel.
Shentel in 2012 secured a deal with Sprint to bolster its network with LTE technology and spectrum assets in the 1.9 GHz and 800 MHz band received from Sprint.
Shentel has also inked a series of deals with Sprint to extend their relationship. Sprint will transition its existing retail wireless operations in the nTelos footprint, including approximately 291,000 retail customers homed in the nTelos footprint, to Sprint branded affiliate customers.
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Sprint expects the transaction to have a positive impact on EBITDA in the first year following the close of the agreement.
