Sprint Avoids Lawsuit

11:22 am on August 5, 2005 | Category: Business, Law, Wireless

Sprint and another one of its many wireless affiliates called a temporary truce on Monday, signing a short-term deal to end a lawsuit.

The terms of the deal state that Sprint must not market its wireless service in UbiquiTel Inc’s territory after the Sprint/Nextel merger goes through, which is expected to happen sometime in the next few months. In exchange UbiquiTel will drop the lawsuit which they have been pursuing against Sprint.

UniquiTel is not the first affiliate to take legal action against Sprint. Several other small wireless companies have also sued over the past few months, saying that the merger with Nextel will breach Sprint’s agreement not to compete with them head to head.

Sprint says that they are dealing with each lawsuit on a case-by-case basis, and making short term contracts so as to give all parties involved time to work on a new deal.

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    1. [...] The finalization of this merger comes after much anticipation, and many hurdles along the way. The two companies have faced disputes from several of their affiliates, including Alamosa Holdings and UbiquiTel Inc., and while the merger will be allowed to go ahead, new contracts with these affiliates will have to be arranged over the next few months. In one disagreement that could not be resolved, even temporarily, Sprint was forced to buy out the disputing party, U.S. Wireless, at a cost of $1.3 billion. [...]

      Pingback by Telecommunications Industry News » Sprint and Nextel Announce Final Date for Merger — August 10, 2005 #

    2. [...] America’s number three wireless carrier, Sprint Nextel, revealed yesterday that it plans to purchase affiliate company, UbiquiTel Inc., at a cost of about $1 billion. [...]

      Pingback by Sprint to Acquire Another Nextel Affiliate » Telecommunications Industry News — May 24, 2006 #

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