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Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

Journeyman

Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

http://newsreleases.sprint.com/phoenix.zhtml?c=127149&p=irol-newsArticle_newsroom&ID=1298714&highlig...=

Only a state away... This may be the beginning of something big.

IfNEXTEL INTdesides to get into the picture since the assets need to be sold (not to iPCS).

SouthernLINC seems to know how to run a network too but likely have no interest in these northern states.

It could also me absolutely nothing too. With all they put into Boost I wonder if they are grooming it waiting for the right oppertunity to dump the rest of the network.

In any case, I have 2 NEXTEL lines and am happy to be an iDEN customer and this type of news always spurs good conversation.

10 REPLIES 10

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

This is the problem with not having your house in order BEFORE ENTERING INTO A MERGER!!! Sprint was (and still is) run by morons at the very top. Instead of looking at their "Do Not Compete" agreements pre-merger, they ignored them. Then, once the merger was approved...ooops. Sprint should have offered iPCS everything it wanted up front (i.e., a TON of cash)...instead, Sprint acts like a fool and short-changes iPCS. iPCS gets bitter and takes Sprint to court...and wins...and wins...and wins again. So, again, Sprint COULD opt to take over iPCS by buying up 50.1% of the shares outstanding (iPCS is a publicly traded company), but no...instead, this company would rather sell off a strong asset like iDEN. Hmmm...a net loss is better than a net gain? ONLY Sprint could think that THAT is a good thing!

Ugh...and I thought I couldn't have been more disgusted with this company that I already was. If I was nuts, I'd be pulling my hair out because of this unbelievable stupidity! Sad...

On the bright side, at least now perhaps it'll give NIHD the opportunity to swoop in, and offer us iDEN folks REAL handsets, REAL customer service, and REAL network expansion. And, with any luck, NIHD will grow in the US, and take over this rotting carcass known as Sprint and keep the good (the spectrum, maybe even both networks) and dump the bad (i.e., management and the BoDs). So, when life gives you lemons...I'm praying for lemonade. 😄

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Journeyman

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

Basically, all they're doing is selling those portions of their network to some third party handler so they can comply with the court rulings.

What will happen is they will revert back to a pre-merger situation in those areas where some new "Nextel Partners" company will handle the paperwork and take over operations of iDEN so that iPCS will basically have no claim against them.

The real "moron" in this situationis iPCS. Had they not been greedy and changed their conditions over and over, Sprint WOULD have given them a big wad of cash to settle out of court. As it is, iPCS gets nothing and Sprint will continue to operate in these markets simply by allowing a third party handle everything.

Journeyman

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

They have six month to buy them or let iPCS buy those markets, either way it's ugly now

Journeyman

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

You do bring up a good point jrfdsf:

I could see this being likely where they sell these markets to a third party who is to manage the services and what not to Sprint NEXTEL spec and offer everything almost as it was. In fact I forsee a NEXTEL logo and small "Licsensed" wording underneath it.

I see many issues for customers with this design too.

It will be interesting to see what happens, like I said this could be the start of something big or absoluely nothing at all. I am leaning toward very little changing but none the less, news is news and we can all dream...

Journeyman

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States


@jrfdsf wrote:

Basically, all they're doing is selling those portions of their network to some third party handler so they can comply with the court rulings.

What will happen is they will revert back to a pre-merger situation in those areas where some new "Nextel Partners" company will handle the paperwork and take over operations of iDEN so that iPCS will basically have no claim against them.

The real "moron" in this situationis iPCS. Had they not been greedy and changed their conditions over and over, Sprint WOULD have given them a big wad of cash to settle out of court. As it is, iPCS gets nothing and Sprint will continue to operate in these markets simply by allowing a third party handle everything.


I agree that this will be the most likely outcome. One thing to consider is that when all of this started years back the iPCS network was in sad shape. It has improved a lot in the last 1-2 years, at least here in IL. Sprint also has a better contract with iPCS requiring them to build out and supply EVDO if iPCS wants to make more money from the affiliate agreement. Sprint may just be letting them build out the network and upgrading it to DOrA before coming in to buy them out. Look at the affiliates that they bought after the merger that have seen few new towers or upgrades to DO. Looking at it that way it really isn't a bad plan.

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States


@macuser09 wrote:

@jrfdsf wrote:

Basically, all they're doing is selling those portions of their network to some third party handler so they can comply with the court rulings.

What will happen is they will revert back to a pre-merger situation in those areas where some new "Nextel Partners" company will handle the paperwork and take over operations of iDEN so that iPCS will basically have no claim against them.

The real "moron" in this situationis iPCS. Had they not been greedy and changed their conditions over and over, Sprint WOULD have given them a big wad of cash to settle out of court. As it is, iPCS gets nothing and Sprint will continue to operate in these markets simply by allowing a third party handle everything.


I agree that this will be the most likely outcome. One thing to consider is that when all of this started years back the iPCS network was in sad shape. It has improved a lot in the last 1-2 years, at least here in IL. Sprint also has a better contract with iPCS requiring them to build out and supply EVDO if iPCS wants to make more money from the affiliate agreement. Sprint may just be letting them build out the network and upgrading it to DOrA before coming in to buy them out. Look at the affiliates that they bought after the merger that have seen few new towers or upgrades to DO. Looking at it that way it really isn't a bad plan.


I don't know. The way I see it, how good is the plan if it means you end up losing another 2-3M subscribers just to keep the 0.8M at iPCS? Does that even begin to make any sense, esp since Sprint counts the affiliate subscribers as part of their own subscriber base?!? So, in the end, there will still be a net loss of 2-3M post-paid subscribers. How on earth is that a good thing?!?

Journeyman

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

If the IDEN portion becomes an affiliate (say Nextel Partners) then those subs can still be counted. Since Sprint has no ownership or say in the new company that should be a way around the ruling. Sprint would still be providing the CS and billing like they do with the other affiliates and thus get a small fee for that service.

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

So you're saying that it's better to lose up to 3M subs and consequently reduce revenues to only a fraction of what you're getting from them now, rather than buy out your affiliate so that you can consume their totaly subscriber base and increase your revenue overall? Hmmm...that still sounds like bogus Sprint thinking to me, the same thinking that got us into this mess in the first place.

But hey...what do I know...I've been shorting this stock since the merger was announced, and I've been rewarded handsomely. 😄

Journeyman

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

<blockquote><hr>quasijedi wrote:<br><p>So you're saying that it's better to lose up to 3M subs and consequently reduce revenues to only a fraction of what you're getting from them now, rather than buy out your affiliate so that you can consume their totaly subscriber base and increase your revenue overall? Hmmm...that still sounds like bogus Sprint thinking to me, the same thinking that got us into this mess in the first place.</p><p></p><p>But hey...what do I know...I've been shorting this stock since the merger was announced, and I've been rewarded handsomely. :D</p><hr></blockquote><blockquote>I agree..... but I'm not sure Sprint has the cash to buy iPCS, otherwise I think they would have bought them a long time ago.</blockquote><p></p>

Re: Sprint Nextel Announces Process to Divest iDEN Assets in Parts of Midwestern States

They obviously don't have the cash now. Hell, they're barely able to scrounge up enough money to pay off their current interest obligations on the debt they owe, let alone the debt owed altogether.

With revenues continuing to plummet (btw, revisions are in...and analysts have LOWERED their estimates on earnings for Q2), it could be only a matter of time before Sprint goes bellyup after all.

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