Sprint Nextel will pay $312.5 million to acquire affiliate Northern PCS, Sprint said Wed. The price includes debt assumption. The purchase will be the 7th of Sprint’s 10 former PCS affiliates that it has acquired. Sprint has affiliate agreements with 2, Shentel and Swifttel, and is in a legal dispute with the other, iPCS. The company also recently bought former Nextel partners. Sprint expects to complete the acquisition in Q3 2007, subject to state approval. As with previous PCS buys, the FCC will not likely be involved, a Sprint spokesman said. Financial analyst firm Standard & Poor’s said its ratings and outlook for Sprint Nextel are unaffected: “Given the size of the transaction, there will not be any meaningful impact on leverage.”
Adam Bender
Adam Bender, Senior Editor, is the state and local telecommunications reporter for Communications Daily, where he also has covered Congress and the Federal Communications Commission. He has won awards for his Warren Communications News reporting from the Society of Professional Journalists, Specialized Information Publishers Association and the Society for Advancing Business Editing and Writing. Bender studied print journalism at American University and is the author of dystopian science-fiction novels. You can follow Bender at WatchAdam.blog and @WatchAdam on Twitter.
Wireless companies should “get past” political friction in spectrum dealings with the FCC, and “get together from a national perspective,” Northrop Grumman Vp/CTO Robert Brammer said at the WCA conference. Wireless network security is a major safety and homeland security issue, and requires involvement beyond the govt.’s, he said: “We need much higher awareness of security issues. Don’t underestimate these security threats.”
The competitiveness of Sprint Nextel and Verizon Wireless will be hurt by the need to develop workarounds if the ITC’s Qualcomm ban isn’t overturned, Stifel Nicolaus analyst Rebecca Arbogast told Communications Daily. Investors say substitute devices could be created in 2 quarters, but carriers say it could take 1-2 years, Arbogast said. The reality is “probably somewhere in the middle,” she said.
AT&T’s “pure IP” backbone upgrade will be a “great platform for integrated, converged services,” Group Pres.- Operations Support John Stankey said Mon. at the Bear Stearns Conference in N.Y.C. And the wireless network is due for an upgrade, he said, predicting 3G coverage in “nearly all 100 top markets” by year-end.
Court costs, inefficiency and “degraded” marketing have dogged Vonage the last 12 months, Vonage CFO John Rego said Mon. at the Bear-Stearns Conference in N.Y.C. The company hopes new ads and services, coupled with a possible 4th Circuit overturn of the Verizon patent infringement decision, will make Vonage profitable, he said.
Copyright Royalty Board (CRB) judges Mon. denied all motions for rehearing by webcasters hoping to reverse a March 2 ruling to raise fees they pay to stream music online. The decision came as webcasters, musicians and independent record labels announced formation of a SaveNetRadio Coalition to rally support.
Campaigning to mobilize musicians for net neutrality, the Future of Music Coalition (FMC) Tues. announced a Rock The Net campaign and website, FutureOfMusic.org/RockTheNet. Rock The Net -- endorsed by House Telecom & Internet Subcommittee Chmn. Markey (D-Mass.), 26 bands and others -- maintains that indie musicians will suffer unless Congress stops AT&T, Verizon and other ISPs from charging websites for extra bandwidth. The campaign is “big, powerful and going to rock,” Markey said.
YouTube and other video websites are in multiple deals to bring new content online. Meanwhile, MySpace licensed content protection company Audible Magic to provide a filter that will keep users from uploading that content to their MySpace pages.