US regional wireless carrier NTelos has completed the previously-announced sale of its eastern market wireless spectrum licenses to T-Mobile US in an all-cash US$56m. Under the agreement, the company is leasing back a portion of the spectrum, which…
US regional wireless carrier NTelos has completed the previously-announced sale of its eastern market wireless spectrum licenses to T-Mobile US in an all-cash US$56m.
Under the agreement, the company is leasing back a portion of the spectrum, which covers its markets in Hampton Roads/Norfolk and Richmond, Virginia, to continue serving its customers until it shuts down these operations in November 2015.
In January, NTelos agreed to sell 103 towers, which are located in its western markets, to private equity firm Grain Management and lease them back on a long-term basis. The company sold 85 towers to Grain for US$35m on 17 February and expects to close the transaction in multiple tranches during 2015.
“The proceeds from the spectrum sale and the towers sale we announced in February 2015 will provide us with additional financial flexibility as we expand 4G LTE coverage in our western markets and invest in areas where we are the most competitive,” said NTelos CEO Rod Dir.
The company aims to capitalise on the strong operating performance and favourable competitive position for its retail offering in West Virginia and western Virginia, where it recently extended a commercial partnership with Sprint Corp until 2022.
NTelos provides voice and data coverage for about 282,100 retail subscribers based in Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky.
