iPCS Shareholder Group Opposes Sprint Acquisition
As far as wanting more for the shares...If you paid 45 dollars for a share of something, and were bing forced to sell it for 24, wouldn't you try your hardest to make your initial investment back?
Sprint was initially sued by Horizon(who has since been acquired by iPCS) for forcing to take sub-prime customers on with no deposit, and then be left with the loss when the customer never paid their bill. They were then sued by iPCS because of wording that they(Sprint) had placed in the original Affiliate agreement. Had the botched acquisition on Nextel not taken place.....
Sprint had to lease the spectrum or they were going to lose it as they had no plans to build a network in the places iPCS serves. iPCS is actually making money and adding customers which I think is what the previous poster was getting at as to the financial health.
This also isn't iPCS demanding more money but one shareholder so don't take it out on iPCS. Timothy Yager actually seems to be alright with $24 per share.
My pro iPCS sta...
1.) As the previous poster stated, Sprint needed a method to build out a network quickly to make use of it's available spectrum. Without their own resources to efficiently, keyword there is efficiently, build out themselves, they started the affiliate program, which gave birth to essentially small rural carriers operating under the sprint brand name, think franchise. Affiliates owned and operated customer service call centers, billing centers, network buildout, stores, personnel, etc, etc.
2.) Just because the...
I'm sure there was an offer at some point. They did buy out the 13 other affiliates. I can only conclude they didn't like the price and then sued, and sued...
Guess what, sprint wrote off the entire nextel acquisition, hemorrhaged customers for years and now is worth less money. Assuming ipcs didn't roll out the 3g network upgrades or invest in more towers, its worth less now to sprint.
From a technical standpoint sprint could sign a limited ...
In my opinion Sprint killed itself with the Nextel acquisition. Too short sighted. They wanted all that ARPU that Nextel had, but didn't seem to realize that Nextel was at it's breaking point or didn't care.
The affiliates ran strong companies and most of them got out at the perfect time. Most of the shareholders of those companies would agree... from their brand new boats they bought.
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