Ntelos Holdings says it has reached a settlement with Sprint over disputes related to a strategic network alliance (SNA) between the two operators.
Under a deal dating back to 1999, Ntelos (Waynesboro, VA, USA) provides PCS services on a wholesale basis to Sprint (Overland Park, KS, USA) customers in parts of western Virginia and West Virginia, but in the last year or two the companies have fallen out over billing, among other issues.
Although terms of the agreement were not disclosed, Ntelos described it as a satisfactory outcome for both companies.
“We are pleased to put our disputes with Sprint behind us in a manner we view as a win/win for both companies,” said James Hyde, the chief executive of Ntelos. “Today’s announcement further strengthens our relationship by revising and simplifying a number of terms from the original agreement, which we expect will allow nTelos to maintain wholesale revenue at levels consistent with recent quarters and by establishing a basis from which we can extend and expand our partnership beyond the current term.”
As a result of the settlement, Ntelos says it expects to realize an additional $9.6 million in adjusted earnings before interest, taxation, depreciation and amortization for the three months ending September 30.
The company has also raised its full-year guidance, indicating that it now expects EBITDA of between $150 million and $155 million, compared with a previous estimate of between $140 million and $145 million.