April 21, 2006

With the acquisition of CDMA affiliate Ubiquitel Inc., Sprint Nextel is another step closer to wrapping up the acquisition of all of its wireless affiliates.

The third largest U.S. carrier has agreed to buy Ubiquitel for $1.3 billion, including about $300 million in net debt that Sprint Nextel will assume.

Sprint Nextel said it will pay $10.35 per share for all of Ubiquitel’s outstanding shares of common stock in an all-cash merger, subject to Ubiquitel shareholder and regulatory approvals.

The deal is expected to close in the second quarter of 2006.

As part of the agreement, the two companies will seek a stay of the lawsuit pending in the Delaware court of Chancery.

Ubiquitel had sued Sprint Nextel for violations of its affiliate agreement related to Sprint Corp.’s acquisition of Nextel Communications Inc. last year.

The acquisition of Ubiquitel, based in Conshohocken, Pa., provides Sprint Nextel with another 452,000 direct wireless subscribers and another 151,000 wholesale subscribers.

Ubiquitel serves mid-sized markets in California, Idaho, Indiana, Kentucky, Nevada, Tennessee, Utah, Washington and Wyoming. Ubiquitel reported nearly $423 million in revenues last year.

Sprint Nextel has four independent affiliates left: privately held Brookings/Swiftel and Northern PCS, plus iPCS Inc. and Shenandoah Telecommunications Co.

Shentel recently acknowledged that it was in negotiations with Sprint Nextel and exploring the option of a sale of its wireless operations.

Source: RCR