Following the conclusion of its merger with Sprint Corp, T-Mobile US has delivered Shenandoah Telecommunications (Shentel) a ‘Notice of Network Technology Conversion, Brand Conversion and Combination Conversion’, which gives the smaller company – a Sprint affiliate – a 90-day period within which to negotiate terms to continue the deal.
As per Shentel’s filing with the US Securities and Exchange Commission (SEC), if the two parties are unable to negotiate mutually agreeable terms, T-Mobile has 60 days to exercise an option to purchase Shentel’s wireless assets for 90% of the ‘Entire Business Value’ (as defined in the affiliate agreement). If T-Mobile does not exercise the purchase option, Shentel has a 60-day period to purchase the legacy T-Mobile network and subscribers in its area. Finally, if neither option is deemed satisfactory, T-Mobile has to sell or decommission the legacy network. Discussions are ongoing, Shentel confirms.
Shentel, which operates in Virginia, West Virginia, Maryland and Pennsylvania, and portions of Kentucky and Ohio, has been a Sprint affiliate since 1995. The cellco ended December 2019 with 1.015 million mobile subscribers, and also presides over fibre-to-the-home (FTTH) and DOCSIS 3.1 broadband networks.