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Sprint Can't Offer Service In iPCS Regions

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HUH?

haley72

Jan 5, 2009, 5:41 PM
So why would a Sprint affiliate go after Sprint? I must be missing something here. Can someone please explain?
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Teck_72

Jan 5, 2009, 6:13 PM
iPCS has always been a huge pain in the ass. That's all that I know.
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JL9000

Jan 5, 2009, 6:26 PM
it was brought up a few months back ipcs thinks that sprint is in breach of agreement because clearwire would take there customers

iPCS, a Sprint affiliate, has filed a suit against Sprint in hopes to prevent the company from pairing itself with Clearwire and offering mobile Wimax. iPCS, which has 640,000 subscribers spread across seven states, says that the Wimax service would compete with its own services, and thereby violates an exclusivity agreement it has had on record with Sprint since 1999. Sprint believes the Clearwire deal will not interfere with its affiliates, and has asked a judge to rule so
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algorithmplus

Jan 6, 2009, 8:32 AM
In Sprint's defense, it is not directly involved with the management of Clearwire, but the fact that Sprint is the majority owner of Clearwire with 51% ownership seems to indicate that Sprint Nextel could take full control of Clearwire at anytime. If Sprint owned 49% of Clearwire, I don't think iPCS would have any defense.
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Overmann

Jan 7, 2009, 10:19 AM
Sprint better hurry up and sell 2% of Clearwire stock then!
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jennafaw

Jan 5, 2009, 10:10 PM
yeah well, sprint is still Very Happy better.
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Menno

Jan 5, 2009, 7:07 PM
Competition. Sprint told iPCS that they would have exclusive rights to sell sprint services in certain regions. Sprint merges with clearwire and creates wimax, a service iPCS cannot offer but is a direct competitor to their services. This violates their exclusivity agreement.

Why sprint made the agreement in the first place is anyones guess.
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JL9000

Jan 5, 2009, 7:10 PM
so dose ipcs sell internet service i thought it was just local cell phone service(i could be wrong) because if ipcs dose not have any type of internet service then how would that be in violations
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Menno

Jan 5, 2009, 7:22 PM
Because the Wimax system is also offered for phones from what I've read. Similar to the LTE technology that verizon is adopting. It will be for internet and data, but also for voice.
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JL9000

Jan 5, 2009, 7:32 PM
thanks for that info i was a lil unsure on that

next question though would be how can ipcs just keep sprint outta the areas should the agreement not work both ways is ipcs going to switch to lte if so would that mean that ipcs would be in violation
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Menno

Jan 5, 2009, 7:40 PM
No, they prolly just don't have permission to sell sprint branded wimax phones. Sprint is most likely trying to keep the tech to themselves, so ipcs is going to try and force their hand to get a chance at the technology. ipcs will only sell the sprint phones, but they most likely don't have permission from sprint to sell anything but current tech phones.


I work for verizon btw, so this is speculation.
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JL9000

Jan 5, 2009, 7:45 PM
kool my stuff is all just trying to piece stuff together the end result to me would be every carrier in the end is going to be lte or wimax so why punish sprint for getting the jump i understand about what the violation is stating but there still going to run off sprint towers if im not mistaking (by the way this whole thing with posting is new to me i been reading phonescoop for sumtime now not to sure what im doing)
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Menno

Jan 5, 2009, 7:57 PM
Sprint doesn't own any towers really. They sold them off and actually rent them from another carrier.

From what I am reading about this other company (IPCS) They seem to be a small regional company that offered to sell Sprint Products and services in areas where sprint didn't serve customers. So the plans, devices, etc. would all be sprint, but IPCS would be the ones actually billing the customers and offering support.

If Sprint is developing a new phone technology, (WiMax) and not allowing IPCS to sell it, they could potentially pull ipcs customers away, something that under their current agreement is illegal. So Sprint either needs to offer WiMax tech ot ipcs, not offer it in that area, or find some legal way to appease the compan...
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JL9000

Jan 5, 2009, 8:00 PM
word now it makes sense thanks for clearing up
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Versed

Jan 5, 2009, 8:14 PM
It really is moot, its like arguing where to put the new lounge in a sinking ship.
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j-villa

Jan 5, 2009, 8:39 PM
Laughing Laughing
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algorithmplus

Jan 6, 2009, 8:54 AM
LMAO. Although, if iPCS could force Sprint to buy, especially a cash sale, Sprint-Nextel would take on those problems and iPCS shareholders walk away cash in an illiquid market. With a market cap of only $101 million (at 5.88 per share), Sprint could probably handle it and not have to spend any more money on legal defenses, thereby actually offsetting the net cost to Sprint Nextel shareholders, as the legal costs are sunk costs no matter what the outcome is.
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carmodboy99

Jan 5, 2009, 10:27 PM
Ok, everyone seems a little ill informed on this, so let me clear up a few things.

iPCS is an affiliate of Sprint that agreed to create and expand upon a network compatible with Sprint's PCS network it was rolling out (1993/1994). In turn, Sprint agreed to stay out of areas built by affiliates, the trade-off being Sprint's ability to boast the nations largest PCS network "built from the ground up" and having service seamlessly provided to its customers traveling in those areas.
This worked very well for all involved until the HUGE headache that is/was NEXTEL was bought. Guess what, Nextel had existing stores and service offerings in areas formerly off limits to Sprint. Then comes the crapstorm of lawsuits from affiliates, Sprint f...
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carmodboy99

Jan 5, 2009, 10:29 PM
*sidenote* iPCS has 1.1 million customers when they offered themselves up at $985 million
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algorithmplus

Jan 6, 2009, 8:56 AM
Good explanation.
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Menno

Jan 6, 2009, 9:10 AM
Thanks for this. As i said, I was just speculating.
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algorithmplus

Jan 6, 2009, 8:48 AM
Doesn't iPCS offer Sprint branded EV-DO service as well as voice service?

Honestly, with a market cap of only $101 million (5.88/share), Sprint should just offer the stockholders of iPCS a small premium to sell to Sprint. This would be offset by the legal costs that Sprint is using to fight iPCS. It's not like iPCS stock is going to go up with the economy the way it is and the fact that it sells Sprint service which doesn't always have the best name with consumers (although Sprint seems to be making progress with it.)

I think Sprint is going to have more problems coming up as consumers continue to tighten their purse strings and cut back on premium spending like internet, ringtones, music, etc. Those problems are not unique to Spr...
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carmodboy99

Jan 7, 2009, 3:03 PM
Sprint is probably best prepared to deal with that considering the internet and texting services are built into all of the new plans, at prices far below any of the other big guys.
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algorithmplus

Jan 8, 2009, 8:28 PM
Just because Sprint generally prices its services less than the big guys, that doesn't mean Sprint customers are immune to the recession based on that fact.
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