T-Mobile to negotiate with Sprint affiliate Shentel over its wireless business


Following the closing of T-Mobile and Sprint’s merger earlier this month, it’s been revealed that T-Mo may end up acquiring a regional Sprint affiliate as well.

Shenandoah Telecommunications, aka Shentel, has revealed that it’s in negotiations with T-Mobile to continue on as an affiliate of T-Mo post-merger. Shentel has been operating as an affiliate of Sprint since 1995 and has more than 1 million wireless customers in states like Virginia, West Virginia, Maryland, and Pennsylvania.

In a filing with the SEC, Shentel explains that its affiliate agreement gives its 90 days to negotiate with T-Mobile about staying on as an affiliate. If no agreement is reached between the two, then T-Mobile will have 60 days to decide if it wants to purchase the assets of Shentel’s wireless business for 90% of its entire business value.

If T-Mobile does not purchase Shentel’s wireless business, then Shentel will have 60 days to buy the legacy T-Mobile network and subscribers in its service area. And finally, if Shentel does not buy those assets, T-Mobile must sell or decommission its legacy network and customers in Shentel’s service area.

Neither T-Mobile nor Shentel have given any official indication about the negotiations or what they expect to happen. Analysts at Raymond James speculate that T-Mobile may want to work through the process quickly, while analysts at B. Riley FBR feel that T-Mobile is likely to buy Shentel’s wireless business.

Thanks Robert!

Via: Light Reading
Source: Securities and Exchange Commission

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  • Jonathan

    I’m kinda hoping that Shentel continues to be an affiliate for a while. Shentel seems to be on a mission to build out within their service area. I’m afraid if T-Mobile buys them today, the expansion will slow. Regardless, the addition of their coverage to T-Mobile users is great for these areas.

  • Capt CD

    Now we need to get T-Mobile to purchase someone in Alaska. A “National” wireless carrier.. except for Alaska?

    • JG

      I was up there for a cruise a few years back… Very nice area, wouldn’t mind going back some time…

      But yeah… I had voice (got a “Where are you? We want to go back to the ship now” call when I split off from the group in … Skagway?) but I had no cellular data the entire two weeks we were there… And open WiFi networks were extremely hard to find… [Except at the Alaska Brewing Co in Juneau Alaska – got an hour of WiFi there].

      Before we left, I emailed GCI to see if I could get a one time use SIM card. They said I could, but they couldn’t ship out of state. Kind of wish I would have, but research I did suggested using GCI would be just like we were on T-Mo proper so I didn’t bother.

    • GoKnight

      T-Mobile used to have native coverage in Alaska. However, they sold their spectrum holding to GCI Wireless and remained as a roaming partner. I’ve been there back in 2015 and I had decent coverage and reciprocal unlimited voice and data.

  • izick

    T-Mobile is already expanding in parts of the Shentel area from the former T-Mobile side, while Sprint was just riding off of Shentel and their work. T-Mobile has expended significantly, including 5G service in towns/communities in West Virginia. I think this is a straight buy-out for T-Mobile on their mission to have the best network, best price, and best service. That’s their strategy for continued growth.

  • superg05

    they starting to get greedy