Sprint Strikes Deal With i-wireless To Strengthen Its Position In Wireless Lifeline Services Industry

Sprint S revealed that it struck an agreement with i-wireless, LLC to strengthen its position in the wireless Lifeline services industry as a leader. According to the company, the partnership would integrate its Assurance Wireless and i-wireless' Access Wireless into one entity.

Sprint said the entity would operate under the name i-wireless and would be led by i-wireless Founder and CEO, Paul McAleese. The company added it would have 70 percent stake in the business, with i-wireless owning the remaining 30 percent.

The company's President of prepaid, Dow Draper, said "Sprint has enjoyed a great relationship with i-wireless for many years. We're excited to move forward with this strategic partnership, which will result in efficiencies for both companies, including financial synergies, such as acquisition costs, device purchasing scale and working capital flexibility."

The telecom service provider said the partnership would leverage the expertise of two industry leaders, and would integrate its strong position as a network provider with i-wireless' national distribution strength. The company indicated that i-wireless has a unique competitive advantage in its ability to accurately and efficiently qualify new customers for Lifeline services through a relationship with its tactical investor, The Kroger Co.

i-wireless CEO, Paul McAleese, commented about the developments saying "This alliance will create a vibrant competitor ready to embrace a modernized Lifeline program. As the category transitions to broadband, we're enthusiastic about the potential to help customers more fully participate in today's digital economy by making access to employment, education and healthcare services more affordable to low-income consumers."

Sprint indicated that the transaction was subject to review by the Federal Communications Commission, as well as, other regulatory approvals.