December 14, 2004

Sprint PCS affiliate UbiquiTel announced today that it has amended its management and services agreement with Sprint PCS.

UbiquiTel said the amendment will reduce fees for back-office services and commits the affiliate to Sprint PCS' reseller business through 2006.

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UbiquiTel noted that the latest amendment builds on an agreement earlier this year that called for the carrier to pay Sprint PCS $7.63 per subscriber per month for back-office fees, but included an option that allowed UbiquiTel to exercise a "most favored nations" provision allowing the carrier to drop the monthly back-office fees to $7.25 through the end of this year, to $7 in 2005 and to $6.75 in 2006.

UbiquiTel will also support Sprint PCS' reseller agreements with its mobile virtual network operator partners, including Virgin Mobile USA L.L.C., Qwest Communications International Inc., AT&T Corp. and ESPN through 2006.

UbiquiTel said it will be compensated for network usage at the same rates that Sprint receives from the MVNOs.

UbiquiTel added that it reserves the right to decline participation in any future reseller agreements that do not have terms as favorable as those provided in AT&T's MVNO deal signed earlier this year.

Source: RCR News

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