This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shenandoah Telecommunications' CEO Discusses Amended Sprint Nextel Agreement (Transcript)

The Addendum was signed on February 2 and was attached to our 8-K release that evening. We’re very pleased with the terms we’ve been able to reach.

In addition to the benefits I’ve just highlighted, key contract points which are outlined on slide five are as follows. Shentel will use our best efforts to complete the upgrade by December 31, 2013. Initial 20-year term of our current affiliate contract has been extended to five additional years, now going out to November 2024. Additionally, our agreement retains the provisions for two 10-year extensions.

Our current contract has limits on the level of capital expenditures that Sprint can require Shentel to make in our network. Those limits remain in effect.

Continuing on slide six, Shentel will benefit from the migration of adding customers in our service area. Sprint will have a migration plan to move the postpaid and prepaid customers currently on the iDEN network, and we anticipate this will begin later this year and be completed by the end of 2013. There is no change to the 8% management fee we currently pay to Sprint, but the net service fee cap that’s currently 12% on net billed revenues will increase to 14% on July 1, 2013. That does not mean that the net service fee will necessarily increase to 14% on that date, but if an analysis of the balance of payments between Sprint and Shentel supports raising the rate, Sprint could increase the net service fee to 14% at that time.

As was the case with the 12% cap, the 14% cap cannot be changed without the mutual consent of both parties. Retaining the cap for all the services that Sprint provides was an important contract term for Shentel as it gives us the ability to forecast our expected financial results with more accuracy.

And finally, the contract continues to enable us to purchase network equipment and services from Alcatel Lucent at the same price they are sold to Sprint.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs