YET ANOTHER Sprint affiliate files against the merger!

[bobolito]

Gulf Coast Wireless joins list of disgruntled Sprint affiliates

By Dan Meyer
Jul 29, 2005

Sprint Corp.'s wireless affiliate troubles gained more steam as network partner Gulf Coast Wireless L.P. joined the growing list of disgruntled affiliates seeking injunctive relief from Sprint's pending acquisition of Nextel Communications Inc.

In a court filing, Gulf Coast, which has ties to fellow affiliate US Unwired Inc., said it was seeking preliminary and permanent injunctive relief preventing Sprint from violating its affiliate agreement. Gulf Coast Wireless noted that Sprint's acquisition of Nextel will place Sprint in direct competition with the affiliate through Nextel's and its affiliate Nextel Partners Inc.'s networks in Gulf Coast Wireless' service areas that include the coastal regions of Louisiana and Mississippi.

The complaint is similar to previously lodged accusations by Sprint affiliates UbiquiTel Inc., iPCS Inc., US Unwired, Horizon Personal Communications Inc. and Bright Personal Communications Services L.L.C. claiming that Sprint's acquisition of Nextel will breach exclusivity obligations under the affiliate agreements. Sprint reached an agreement to acquire US Unwired last month for $1.3 billion.



http://www.rcrnews.com/news.cms?newsId=23585

[bobolito]

At this pace, I see Sprint having trouble getting FCC approval unless they address these concerns. They are amounting to be major every day that passes.

[larry]

I thought Gulf Coast was somehow affiliated with US Unwired. But maybe not. I don't think this affiliate stuff will get in the way of FCC approval.

[bobolito]

The article says that Gulf Coast "has ties to fellow affiliate US Unwired."

But don't you think that the FCC will hear these complaints since they are coming directly from companies that are affiliates? That has to have some effect on the FCC's decision. They cannot just go unheard or else what is the purpose of the FCC's review process? At least they will make Sprint/Nextel agree to certain conditions to obtain approval.

[Steve B]

My question is didn't Sprint really consider their affiliates when planning this merger? Because with all these lawsuits it really makes it seem like Sprint's planning left a lot to be desired.

[Chris L]

Originally Posted by bobolito

At this pace, I see Sprint having trouble getting FCC approval unless they address these concerns. They are amounting to be major every day that passes.

I can't see the FCC really caring about the content of the affiliate agreements; it's DOJ who would worry about this sort of stuff, and only if it violated antitrust laws. These are private agreements between Sprint and its affiliates, so I don't see any antitrust implications.

Moreover, given that iPCS was laughed out of court when it asked for an injunction, I don't see much coming of these suits either (except possibly an iPCS-style settlement agreement or an Unwired-style buy-out).

[WirelessBeachBum]

Originally Posted by Chris L

I can't see the FCC really caring about the content of the affiliate agreements; it's DOJ who would worry about this sort of stuff, and only if it violated antitrust laws. These are private agreements between Sprint and its affiliates, so I don't see any antitrust implications.

Moreover, given that iPCS was laughed out of court when it asked for an injunction, I don't see much coming of these suits either (except possibly an iPCS-style settlement agreement or an Unwired-style buy-out).

There could be some serious antitrust violations if all of a sudden an affiliate's information is shared with a competitor (in this case Nextel.)

It won't be pretty....

[danny boi]

Originally Posted by SBacklin

My question is didn't Sprint really consider their affiliates when planning this merger? Because with all these lawsuits it really makes it seem like Sprint's planning left a lot to be desired.

Poor Sprint. Can these merger deals ever go smoothly?

I'm sure we'll find a few more spotted pink frog activists trying to derail the deal somehow or another.

I have a sneaking suspicision that these small time companies want to be bought out and know they will never be able to compete against Sprint on a national basis. They are too far behind in the game.

Sprint will have more than enough on their plates with the whole merging of employees, billing, customers and technology. At the same time, they'll still have to do all the marketing, promoting and selling of their products.

[Chris L]

Well, Sprint settled with Ubiquitel yesterday, and they've already settled with 3 other affiliates (not including to-be-acquired Unwired). Given that, I'll be surprised if the GCW suit survives the month.