Sprint and Kroger’s i-wireless, a Kentucky-based mobile virtual network operator, are coming together even further, as Sprint has announced its impending acquisition of a 70 percent stake in the company. Sprint has been serving as i-wireless’ network provider of CDMA, EVDO, WiMAX and LTE, but as Nasdaq.com reported, this deal will “bring efficiencies for both the companies in terms of acquisition costs, device purchasing scale and working capital flexibility.” While the financial terms of the deal, which is in the final stages of regulatory review, have not been disclosed, Kroger and Genie Global Inc. will retain 15 percent of i-wireless.
Sprint plans on merging its existing Assurance Wireless brand with i-wireless’ Access Wireless. The combination will be helmed by i-wireless’ founder and CEO Paul McAleese and keep its Northern Kentucky corporate headquarters. Other plans for the future include continuous participation in the Lifeline program, which “ensures affordable phone services for low-income consumers,” Nasdaq.com said. Sprint stated: “i-wireless customers who receive 250 minutes on their Lifeline service plan would be upgraded to the Assurance Wireless plan, which offers 350 minutes a month.”
This deal is the latest in Sprint’s effort to boost business, firstly by joining forces with Nokia’s three-channel carrier aggregation in Kansas City’s LTE Plus Network at Kauffman Stadium. The three-channel aggregations were used via the Samsung Galaxy Note7, Galaxy S7, S7 edge, HTC 10 and LG G5 and expanded to more than 500 cell sites in Chicago. Additionally, Sprint has been offering promotional plans and discounts, which Nasdaq.com said haven’t worked in the wireless company’s favor. However, with iPhone 7 out, the news organization expects future promotions to “dent margins.”
November 28, 2016
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