Sprint Coverage to Get a Boost in Midwest

It will purchase spectrum and customers from U.S. Cellular


many cell phones wireless 185 flickr Sprint Coverage to Get a Boost in MidwestSprint Nextel (NYSE:S) announced on Wednesday that it will acquire wireless spectrum and 585,000 customers in Midwestern states from U.S. Cellular (NYSE:USM).

The deal, worth $480 million, will expand Sprint’s network coverage across Illinois, Missouri, Ohio, Indiana and Michigan, the Associated Press noted.

smartphone and globe Sprint Coverage to Get a Boost in Midwest
So What Do We Do With Sprint Now?

Investors weren’t impressed with the news. Shares of U.S. Cellular plunged more than 7% in Wednesday morning trading, while Sprint shares slipped more than 1%.

In the third quarter, U.S. Cellular posted income that fell 43% compared to last year, on sales that climbed 3%. The company indicated that it would concentrate on its core markets. The cellular customers sold to Sprint account for about 10% of U.S. Cellular’s total customers.

If the deal receives the OK from regulators, it will close in mid-2013.

Last month, Japan’s Softbank (PINK:SFTBY) announced that it will acquire a 70% stake in Sprint, which has struggled to compete with larger U.S. wireless service providers AT&T (NYSE:T) and Verizon (NYSE:VZ).

Article printed from InvestorPlace Media, http://investorplace.com/2012/11/sprint-coverage-to-get-a-boost-in-midwest/.

©2015 InvestorPlace Media, LLC

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