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Sprint Affiliates Hop On Gravy Train

Jul 15, 2005, 5:23 PM by (staff)

Sprint affiliate iPCS has filed suit against Sprint, claiming their merger with Nextel violates a non-compete clause the company has with this regional reseller. The suit claims that since Nextel's service overlaps about 95% of iPCS's assigned area, the company will violate an exclusivity clause in their agreement after the Nextel merger. Sprint affiliate Ubiquitel filed a similar suit earlier in the week. The affiliates could ask for a court injunction to stop the merger, but are most likely just doing this to force Sprint into buying them out like they recently did with US Unwired. Nextel and reseller Nextel Partners are also squabbling, however instead of arguing over exclusivity, the companies are bickering over how much of Nextel Partners' value is tied to their association with the carrier.

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Comments

This forum is closed.

This forum is closed.

muchdrama

Jul 16, 2005, 7:44 PM

Uh oh

Yeah, I'm thinking this merger might not be happening as soon as everybody seems to think it will.

evilbstrd666

Unless Sprint is sitting on a pile of money that no one knows about.....

What about Nextel though? Have them buy out the affiliates?

...

dca

Who knows, the FCC might invoke the, "are you sure you wanna' do this" clause... Once the merge is approved, nine billion wireless companies all file lawsuits?

...

MattFoley

I agree. Shh... don't tell Nextel18...

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