Sprint Nextel Buys iPCS

Sprint (News - Alert) Nextel Corp. is buying its wireless affiliate iPCS, which now resells Sprint service to about 710,200 retail subscribers in 81 markets, plus 270,000 wholesale customers as well.

 

IPCS has wireless licenses that cover 15.1 million people in portions of Illinois, Michigan, Pennsylvania, Indiana, Iowa, Ohio and Tennessee.

 

In part, the deal helps Sprint Nextel (News - Alert) grow its customer base, adding about one million customers. But the deal also ends what has been at times a contentious relationship between Sprint and iPCS (News - Alert). Sprint had been in a process of divesting its Nextel assets in regions where iPCS operates, for example.

 

As part of the agreement, Sprint Nextel and iPCS will seek an immediate stay of all pending litigation between the parties with a final resolution to become effective upon closing of the acquisition.

 

As a result, Sprint will no longer be required to divest its iDEN network in certain iPCS territories and will terminate its previously announced divestiture process pending closing of the transaction.