Sprint Nextel affiliate goes up for sale

[TNDan21]

Sprint Nextel affiliate goes up for sale
Kansas City Business Journal - April 14, 2006

A Virginia telecommunications company said Friday that it has put a subsidiary up for sale that operates as a Sprint Nextel Corp. wireless affiliate.

Shenandoah Telecommunications Co. (Nasdaq: SHEN) of Edinburg, Va., said it has been unable to negotiate a new affiliate contract with Sprint Nextel.

The subsidiary, Shenandoah Personal Communications Co., sells Sprint-branded wireless services in parts of Virginia, Maryland, Pennsylvania and West Virginia. It ended 2005 with about 123,000 subscribers.

Shenandoah is one of only four remaining Sprint-branded affiliates that has not chosen to sell to the carrier in the wake of last year's $38 billion merger of Sprint Corp. and Nextel Communications Inc.

In the past 12 months, Sprint Nextel has bought Sprint-branded affiliates Alamosa Holdings Inc., US Unwired Inc., IWO Holdings, Gulf Coast Wireless LP and Enterprise Communications Partnership in deals with a combined price tag of $6.5 billion.

Sprint Nextel also has agreed to buy Nextel Partners Inc. for $6.5 billion. Nextel Partners sells Nextel-branded service in rural parts of the country.

The merger necessitated the deals because the affiliates' original deals called for Sprint not to compete head to head in affiliate territory, which it would have with Nextel in the fold.

Shenandoah said in a release Friday that it has extended a forbearance agreement with Sprint Nextel that offers protection against that threat through July 14.

Sprint Nextel spokesman David Gunesagaram said Friday that the company was in discussions with affiliates, but he declined to address Shenandoah specifically.

http://www.bizjournals.com/kansascit...0/daily35.html

[Fire14]

Originally Posted by TNDan21

Shenandoah is one of only four remaining Sprint-branded affiliates that has not chosen to sell to the carrier in the wake of last year's $38 billion merger of Sprint Corp. and Nextel Communications Inc.

They have chosen not to sell to Sprint, yet they are going up for sale?
If I had the money I would buy the company & turnaround & sell it to Sprint/Nextel for a small billion dollar profit.

[agentHibby]

They sold there cellular network to Verizon.
I do believe they have some wireline assets as well and maybe want to sell everything.

[larry]

I think Sprint will end up with them.

[tcm66]

NEWS RELEASE

For further information, please contact Earle A. MacKenzie at 540-984-5192.



SHENANDOAH TELECOMMUNICATIONS COMPANY TO EXPLORE SALE OF SHENANDOAH PERSONAL COMMUNICATIONS COMPANY



EDINBURG, VA, (April 14, 2006) – Shenandoah Telecommunications Company (Shentel: NASDAQ: SHEN) announced that it is now considering a potential sale of its wireless subsidiary, Shenandoah Personal Communications Company, a Sprint PCS Affiliate of Sprint Nextel Corporation. The Company had earlier reported its ongoing discussions to negotiate a new affiliate agreement with Sprint Nextel, but to date the parties have been unable to reach a mutually acceptable agreement.
As a result, Shentel is now going to consider other alternatives in discussions with Sprint Nextel including the possible sale of Shentel’s PCS operations. Shentel is unable to predict whether it will be able to negotiate a sale or the terms or timeline for such negotiations; nor is it able to predict the ultimate resolution of its discussions with Sprint Nextel concerning its relationship.
Shenandoah Personal Communications Company and Sprint Nextel Corporation have agreed to extend the Forbearance Agreement originally executed by the parties on August 9, 2005 from April 15, 2006 to July 14, 2006. The Agreement sets forth Sprint Nextel's agreement to observe specified limitations on operating Nextel's wireless business in the Shentel personal communication services (PCS) service area and Shentel's agreement not to initiate or seek certain injunctive or equitable relief under certain circumstances during the term of the Agreement.

About Shenandoah Telecommunications
Shenandoah Telecommunications Company is a holding company that provides a broad range of telecommunications services through its operating subsidiaries. The Company is traded on the NASDAQ National Market under the symbol “SHEN.” The Company’s operating subsidiaries provide local and long distance telephone, Internet and data services, cable television, wireless voice and data services, alarm monitoring, and telecommunications equipment, along with many other associated solutions in the Mid-Atlantic and Southeastern United States.

___________________
Earle A. MacKenzie
Executive Vice President
& Chief Operating Officer



This release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of unforeseen factors. A discussion of factors that may cause actual results to differ from management's projections, forecasts, estimates and expectations is available in the Company filings with the SEC including the Company's 2005 Annual Report on Form 10-K. Those factors may include changes in general economic conditions, increases in costs, changes in regulation and other competitive factors. The Company expressly disclaims any obligation to update or review any forward-looking statements contained in this release.

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