In a very strange move this week by Sprint, 3,300 CDMA and IDEN towers will be sold to TowerCo for $670 Million in cash. "..this transaction provides Sprint Nextel with additional liquidity which gives us greater flexibility in managing our company." said Bob Azzi, senior vice president, Field Engineering and Operations, Sprint Nextel. The deal is still subject to all standard closing conditions, but is expected to be approved withing 90 days.
Sprint has been struggling since the acquisition of Nextel and the IDEN network fiasco. Lately Sprint has been struggling with poor customer service. I have to wonder how getting rid of your network will improve the way your customers are treated. Sprints biggest problem has been presented in the form of Illinois PCS or IPCS. IPCS is a Sprint affiliate that has taken the opportunity to sue Sprint Nextel at every turn. I can't help but think that we will see a lawsuit again for breach of this affiliate agreement. Unless this is Sprints way of trying to rid themselves of IPCS for good. In the event another company owns the network assets to Sprint, and the lease of their own transmission from TowerCo does not include the ability to sublet, then IPCS will be forced to also lease frequency from TowerCo to give their customers the network they once enjoyed out of the main area. This would then put IPCS competing directly against Sprint outside of their affiliate market area for the first time putting them in breach of the affiliate agreement that they flagrantly issue lawsuits over. Unification of Sprints internal hierarchy would certainly improve customer service. I would have to believe this is a power play from Sprint Nextel, but only time will tell.
More on the sale of towers at SPRINT
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