dslreports logo
site
spacer

spacer
 
   
spc
story category
Sprint Nextel To Buy iPCS For $426 Million
Rocky relationship comes to a profitable end...
by Karl Bode 10:11AM Monday Oct 19 2009 Tipped by kem09030 See Profile
Ending what's been a long and often thorny relastionship, Sprint has agreed to acquire Sprint affiliate iPCS for $426 million. The Schaumburg, Illinois based company was the last major Sprint affiliate, offering Sprint service to roughly 700,000 customers in the Midwest. In 2008 iPCS legally got Sprint to stop advertising its Nextel service in iPCS territory, arguing it was a breach of contract. iPCS also filed an unsuccessful suit to stop Sprint's creation of the spun-off Mobile WiMax Clearwire venture. The companies will freeze all ongoing litigation "with a final resolution to become effective upon closing of the acquisition," according to Marketwatch.

view:
topics flat nest 
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1
Reviews:
·Millenicom
·Embarq Now Centu..
·Comcast
·CenturyLink

1 edit

A Titanic sale.

Well sort of sort of like iPCS unhooking their canoe from the Titanic. When in doubt sell out. I hope iPCS stock holders get big bags of money.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

1 edit

Re: A Titanic sale.

If I'm not mistaken, Sprint / iPCS hasn't been a good relationship, and its probably best that they get this over with.
Isn't getting a high return on share price what most companies exist for now anyways (most don't care about what they sell/service... just pump that stock!)
caco
Premium
join:2005-03-10
Whittier, AK

Heads will roll on IPCS side once purchase is completed

IPcs big wigs will most likely get nice final check
--
»www.seabee.navy.mil
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: Heads will roll on IPCS side once purchase is completed

Good riddance. The company has been nothing but trouble for Sprint.

fancydancer
Perception is reality
Premium
join:2002-08-28
Springfield, IL

About time!

It took until Summer 2008 for iPCS to upgrade their network in my area to EVDO from 1xRTT, albeit it was Rev.A. Good riddance!

rawgerz
The hell was that?
Premium
join:2004-10-03
Grove City, PA

Re: About time!

Now maybe they will be able to update coverage area maps in IPCS areas and roll out 3G all over!

w0g
o.O

join:2001-08-30
Springfield, OR

Go Sprint!

I'm a fan of this company. WiMAX, openness, Palm Pre, technology driven. Good stuff.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Atlantic, IA

Finally

Hopefully we will get some EVDO in central Nebraska now.

Bad news is something tells me this would have been holding up T-Mobile or someone else buying Sprint &/or Sprint buying someone else.

This purchase was to help with their plans of being bought or buying someone else plain and simple.
DarnellP

join:2004-10-12
Las Vegas, NV

1 recommendation

Re: Finally

said by The Beer:

Bad news is something tells me this would have been holding up T-Mobile or someone else buying Sprint &/or Sprint buying someone else.

This purchase was to help with their plans of being bought or buying someone else plain and simple.
Goodness gracious, people. how many times and ways does it have to be said, t-mobile is not buying Sprint. Even deutsche telekom themselves nixed that idea in so many words.

This was more about Sprint not having to divest portions of their iDEN network and getting a monkey off of their back that kept suing them in order to get the end result that we see today. Now could someone else come in and buy Sprint? Sure, it's possible. However, imo it's doubtful since everyone's most likely suitor, Comcast is about to spends billions to buy a stake in NBC. instead, I find it far more likely that Sprint eventually hooks up with the last of the major postpaid regional carriers, US Cellular.
LineNoise

join:2006-06-25
Downers Grove, IL

Re: Finally

About time!! I can't believe they went after Virgin before iPCS.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Atlantic, IA
I was simply saying that would hold up any acquisitions by either Sprint or someone wanting to buy Sprint.

I think there is still suitors for a buyout one way or another, UScellular comes to mind as their shareholders are flaming and vocally mad about lack of growth or not just selling out.

A USCC and Sprint deal I don't think would be off the table, USCC has a aging network and a profitable business and Sprint has the network USCC needs to grow.

If USCC's shareholders are ambitious enough they could raise the dough, but Sprint needs to make themselves more worthy of a merger.

Frenchfry

@bellsouth.net

affiliates

Are there any other affiliates under Sprint? I hope this is the last one.
DarnellP

join:2004-10-12
Las Vegas, NV

Re: affiliates

said by Frenchfry :

Are there any other affiliates under Sprint? I hope this is the last one.
Shentel and Swiftel though they don't seem to be the PITAs that iPCS is/was.
kem09030

join:2004-11-29
Rushville, IL

Re: affiliates

Only problem with Swiftel is they are not doing anything to the areas they control. No upgrades and no expansion since it was originally built.

Shentel has been working with Sprint since the merger so it seems they want to stay in business. They are actively upgrading and expanding the network. They have been adding quite a few towers in areas that have no service from any carrier.

Telecomdude

@snl.com

Understated price

Karl, you've understated the price. They're paying $426 million in cash, a tidy exit for iPCS investors and a 34% premium over iPCS's share price on Friday. But Sprint is also assuming $405 million in debt; that makes a total consideration of about $831 million, more than twice iPCS's market cap as of Friday.

»ir.ipcswirelessinc.com/phoenix.z···ghlight=

IIIBradIII
Comm M-E-L Instr

join:2000-09-28
Greer, SC

Re: Understated price

831m
- ongoing litigation costs
---------
true cost
=====

Telecomdude

@snl.com

Re: Understated price

Sure, okay, but the ongoing costs of litigation are probably minimal, I'd guess not even $5 million.

Of course, divesting Sprint's networks in iPCS territory would have been considerably more expensive. In all, this deal probably had to happen. When you consider the affiliate purchasing spree that Sprint went through several years back, it's surprising the deal wasn't done earlier.
pandora
Premium
join:2001-06-01
Outland
kudos:2
Reviews:
·ooma
·Google Voice
·Comcast
·Future Nine Corp..
said by IIIBradIII:

831m
- ongoing litigation costs
---------
true cost
=====
Exactly! Not to mention that iPCS has been a repeated thorn in the side of Sprint (legally) for years.
--
"People demand freedom of speech as a compensation for the freedom of thought which they seldom use."

Gbcue
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8
Reviews:
·AT&T U-Verse
said by IIIBradIII:

831m
- ongoing litigation costs
---------
true cost
=====
But the litigation cost is to Sprint, which would "drop" the litigation upon itself, no?

Half the lawyers would probably be retained and the other half dropped.
--
My BLOG!
Black Friday Ads