Shenandoah Telecommunications Co. announced it has settled its legal battle with Sprint Nextel Corp. The affiliate said it reached new agreements with the national carrier that include the transfer of former Nextel operations to Shentel, within its territory.
Shentel said that the new agreement provides:
— A “greatly simplified, long-term plan” for settling revenue and expenses;
— The transfer of Nextel stores and employees within Shentel’s service area to Shentel, pending any required landlord consents;
— The ability for Shentel to sell iDEN products and services, as well as provide local iDEN customer service.
The agreement settles all outstanding claims between the two companies. Shentel said it will pay a net service fee equal to a percentage of billed revenue, and “Sprint Nextel will continue to retain 8 percent of billed revenue as compensation for use of its spectrum, brands and national advertising.” The deal also allows for adjustments in the service fee in the long run, up to a predetermined cap; however, there are also “provisions under limited circumstances that provide for payments in excess of the Net Service Fee cap if Shentel customers exceed comparable cost or service benchmarks,” according to the affiliate.
“The new agreements provide Shentel more certainty in charting our future, and allow us to continue participation in the important wireless segment of our industry,” said Christopher French, Shentel’s president.
iPCS seeks arbitration
The successful conclusion of the new affiliate agreement with Shentel stands in contrast to Sprint Nextel’s ongoing conflict with affiliate iPCS Inc., which affirmed this week that it has asked for binding arbitration in regards to new service rates instituted by the national carrier.
IPCS also said that it intends to vigorously oppose new roaming rates set by Sprint Nextel, even though it is currently paying the new rates, which went into effect Jan. 1.
