A spat over pricing appeared set to delay a move by T-Mobile US to purchase mobile assets from long-time Sprint partner Shenandoah Telecommunications (Shentel), after the companies failed to strike an affiliate deal.
In a filing to the Securities and Exchange Commission, T-Mobile said it notified Shentel it intended to purchase its mobile assets yesterday (26 August). But it added the companies failed to agree on how to value the assets during negotiations.
It added Shentel filed a formal notice of dispute over the appraisal framework, triggering a 60-day resolution process. If the companies cannot agree terms by then, T-Mobile explained they will both be free to pursue “other remedies”, including arbitration.
T-Mobile warned the appraisal process could be subject to “various other legal challenges that may also extend or affect the timeline”.
Shentel is one of the largest regional players in the US, with a footprint spanning parts of six states in the Mid-Atlantic area and a total of 1.1 million mobile subscribers as of 30 June.
The operator had a contract with Sprint until November 2029. T-Mobile had 90 days after completing its merger with Sprint [1] to negotiate a new affiliate deal, with a further 60 days to decide whether to purchase the company [2] if an alliance was not agreed.
[1] https://www.mobileworldlive.com/featured-content/top-three/legere-leaves-as-t-mobile-sprint-complete-merger
[2] https://www.mobileworldlive.com/featured-content/top-three/former-sprint-cohort-seeks-t-mobile-deal
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