real-time news and commentary for investors
Tuesday, Sep 24
NTELOS settles with Sprint, shares +9.7% AH
- The settlement is related to NTELOS' (NTLS) comprehensive wholesale service agreement with Sprint (S). Financial terms are undisclosed, but NTELOS does state the settlement resolves a data rate dispute going back to 2011, and "historical billing disputes" raised in 2012. (PR)
- NTELOS says the settlement establishes a basis from which the companies "can extend and expand [their] partnership beyond the current term." NTELOS' shares crashed last month on an FBR report indicating Sprint plans to "overbuild" capacity in Virginia/West Virginia territory now covered by its NTELOS deal.
- NTELOS expects to record a $9.6M Q3 adjusted EBITDA gain related to the deal, largely thanks to the reversal of an accrual related to its Sprint dispute.