Sprint Nextel has commenced the process to divest certain Integrated Digital Enhanced Network (iDEN) assets in parts of several Midwestern states.
The sale of these assets is expected to bring Sprint into compliance with an Illinois court ruling requiring the company to cease owning, operating or managing the Nextel National Network in markets primarily located in parts of Illinois, Iowa, Michigan and Nebraska.
The company informed that the divestiture of these iDEN assets will have minimal impact on its financial results. Moreover, the sale would not involve any assets associated with Sprint’s National Network.
The company said that its customers in the geographical areas associated with this divestiture will still be able to use the service on the Nextel National Network during the sale process.
Sprint inherited the iDEN network through the acquisition of Nextel Communications in 2005. Industry reports reveal that for Sprint, running two different networks, its core CDMA services and Nextel iDEN network has resulted in subscriber losses over the past years.
The sale process, including any subsequent transaction, is expected to be completed by the court-ordered deadline of January 25, 2010.
