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Shenandoah Telecommunications agrees to acquire nTelos
“We believe our customers will see a seamless transition to the Sprint platform used by Shentel and will greatly benefit from Shentel’s strong track record of providing reliable wireless service through its expanded and extended affiliate relationship with Sprint“, Dir said.
Upon closure of the transaction, nTelos customers will be transitioned to the Sprint brand and will increase Shentel’s wireless customer base in the region to over one million. The deal has been approved by both companies, with Shenandoah predicting a close early next year.
Most significantly, nTelos’ Strategic Network Alliance with Sprint, which calls for nTelos to provide wholesale roaming services for Sprint customers, will end with the close of the deal. NTelos had planned to shut down service in the Eastern Markets by mid-November. These existing Sprint retail customers, in combination with the nTelos customers, will enable Shentel to serve approximately 581,000 additional customers under its affiliate arrangement with Sprint. Ntelos’ retail stores will convert into Sprint-branded stores that will be managed by Shentel. Additional information will be communicated directly to the nTelos customers and posted to a new website, NTELOS brand.
NTelos is in the process of exiting from its Eastern Markets.
Upon closing of Shentel’s purchase of nTelos, Sprint will receive nTelos spectrum assets covering 5.4 million people in parts of Virginia, West Virginia, Pennsylvania, Maryland, Ohio, Kentucky and North Carolina.
Shentel is committed to investing over $300 million to continue and accelerate the 4G LTE upgrade and expansion of the existing nTelos wireless network.
Shentel will also be able to use Sprint’s 2.5 GHz spectrum within its footprint.
In a separate release, Shentel said it will pick up about 298,000 Ntelos subscribers, giving it more than 1 million wireless customers overall. The new deal also extends that agreements affiliate agreement between Sprint and Shentel a further five year to 2029.
Despite the expected financial outlay, Sprint said the deal will have a positive impact on earnings before interest, taxes, depreciation and amortization in the first year after close.
