Shentel / Sprint LTE - (was ntelos - West & N&W Virginia)

[Galaxyguy]

Affiliate was the word I should have used. An affiliate isn't necessarily a bad thing. I live in the Shentel (affiliate) market and I am impressed how well a small company can run a wireless network. I just hope ntelos can improve to be at least as good as the network is here.

 

Sent from my Galaxy Note 10.1 2014 edition

[cdk]

Affiliate was the word I should have used. An affiliate isn't necessarily a bad thing. I live in the Shentel (affiliate) market and I am impressed how well a small company can run a wireless network. I just hope ntelos can improve to be at least as good as the network is here.

 

Sent from my Galaxy Note 10.1 2014 edition

 

Shentel is a good affiliate. However, I think if the current nTelos management remains in place, it will more closely resemble Swiftel than Shentel...

[dkyeager]

selling 1900 PCS to t-mobile is a fire sale price of 56 million.  Stock has fallen 40%. 

 

http://markets.financialcontent.com/prnews/quote?Symbol=NTLS

[cdk]

ntelos abandoning its eastern market, selling 1900 PCS to t-mobile at fire sale price of 56 million.  Stock has fallen 40%.  Says it wants to focus on western portion and its deal with Sprint.

 

http://markets.financialcontent.com/prnews/quote?Symbol=NTLS

 

http://markets.financialcontent.com/prnews/news/read/28813739/ntelos_holdings_corp._announces_strategic_refocus

 

Even at a $6 per share price that would be less than $130 million for the whole company.

[S4GRU]

This just feels like when Clearwire ditched its retail business and focused only on strategic wholesale with Sprint (and possibly others that didn't really pan out).  It just seems nTelos is headed toward a Shentel or Sprint buyout.

[cdk]

This just feels like when Clearwire ditched its retail business and focused only on strategic wholesale with Sprint (and possibly others that didn't really pan out).  It just seems nTelos is headed toward a Shentel or Sprint buyout.

 

I hope so. I just fear if they (Sprint/Softbank/Shentel) wait, someone else will take them whole.

[S4GRU]

I hope so. I just fear if they (Sprint/Softbank/wait someone else will take them whole.

 

It seems like they are reducing the cost by pumping out assets.  All the AWS spectrum over the whole footprint and the entire Eastern part of the market network and spectrum is non strategic to Sprint.  It looks like they are having nTelos get rid of all that and then they can get on with their offer.  I have no inside info.  It just appears that this is what is going on to me.

[cdk]

It seems like they are reducing the cost by pumping out assets.  All the AWS spectrum over the whole footprint and the entire Eastern part of the market network and spectrum is non strategic to Sprint.  It looks like they are having nTelos get rid of all that and then they can get on with their offer.  I have no inside info.  It just appears that this is what is going on to me.

 

Certainly could be, however I would still think nTelos is vulnerable to be sold wholesale to someone else.

[S4GRU]

Certainly could be, however I would still think nTelos is vulnerable to be sold wholesale to someone else.

 

Without spectrum, nTelos no longer would be valuable to anyone except Sprint.

[dkyeager]

http://ir.ntelos.com/Cache/1001192642.PDF?Y=&O=PDF&D=&FID=1001192642&T=&IID=4110676

 

this is the presentation for conference call.  Includes maps. movement of LTE equipment etc

[S4GRU]

http://ir.ntelos.com/Cache/1001192642.PDF?Y=&O=PDF&D=&FID=1001192642&T=&IID=4110676

 

this is the presentation for conference call.  Includes maps. movement of LTE equipment etc

 

That solves the mystery of Charlottesville once and for all.  It will be a part of the new core strategic Western markers.  

[cdk]

Without spectrum, nTelos no longer would be valuable to anyone except Sprint.

 

Unless someone needed some infrastructure to build out in that area. Plus Sprint could always use the PCS and BRS spectrum than nTelos currently has.

[S4GRU]

Unless someone needed some infrastructure to build out in that area. Plus Sprint could always use the PCS and BRS spectrum than nTelos currently has.

 

Yeah.  But this is low risk.  AT&T and VZW wouldn't do it.  Tmo is focusing its money on 700 build out and rural conversion.  And Tmo needs spectrum in those areas to make a real play.  If nTelos is shedding assets for a potential sale, then they likely already have a commitment from Sprint or Shentel.  A deal has likely already been figured out.  And we are seeing the results of it playing out before our eyes.

[cdk]

http://ir.ntelos.com/Cache/1001192642.PDF?Y=&O=PDF&D=&FID=1001192642&T=&IID=4110676

 

this is the presentation for conference call.  Includes maps. movement of LTE equipment etc

 

They mention migrating existing subs (in the eastern markets) to another carrier. Hopefully Sprint is that carrier...

[S4GRU]

They mention migrating existing subs (in the eastern markets) to another carrier. Hopefully Sprint is that carrier...

 

That was my assumption.  And it doesn't seem like it's Tmo, or they would have likely mentioned it with the announcement of the spectrum sale.

[JDP121]

Well its good to know that the Greater Ch'ville area will be in the western territory. 

[cdk]

Yeah.  But this is low risk.  AT&T and VZW wouldn't do it.  Tmo is focusing its money on 700 build out and rural conversion.  And Tmo needs spectrum in those areas to make a real play.  If nTelos is shedding assets for a potential sale, then they likely already have a commitment from Sprint or Shentel.  A deal has likely already been figured out.  And we are seeing the results of it playing out before our eyes.

 

If crazy Charlie wasn't around I could probably agree with that....

[dkyeager]

Unless someone needed some infrastructure to build out in that area. Plus Sprint could always use the PCS and BRS spectrum than nTelos currently has.

 

 It would be smarter for Sprint to control that spectrum.  Mountainous terrain is tough for cellular service to operate in. Leave those headaches to nTelos or Shentel.

[S4GRU]

If crazy Charlie wasn't around I could probably agree with that....

 

Yeah, but I don't think you get what I'm saying.  I believe nTelos and Sprint or Shentel already have discussed and worked out the framework to a buyout.  And you are likely seeing the first part of the deal...shedding non strategic assets.  Sprint doesn't want to pay for assets it has no need of, and then try to go through the trouble of selling them.  And possibly messing with the spectrum screens.

 

Get an agreement worked out, get them to do all the grunt work.  Get the price down after the assets are sold.  Then buy out the company.  The existing nTelos network is not worth much and it really is not a prize to anyone.  I don't even see DISH going after it.  He needs a national player.  

 

So being worried that Sprint is not buying out nTelos is nothing.  That's probably already happening.  And if not, nTelos is getting less valuable by the day to anyone else as nTelos gets completely dependent on Sprint.  And also, Sprint likely has first right to refusal for any nTelos purchase.  Stop freaking out.

[dkyeager]

It Sprint does buy them, I would want them to do it right, ie not western PA -- which is really only 3G.

[cdk]

Stop freaking out.

 

But then the interenets is not fun.

[dkyeager]

I think it is the investors who are freaking out -- stock down more than 50%

[lordsutch]

nTelos is going to ditch its Tidewater markets in Virginia (divesting the spectrum to T-Mobile) and concentrate on its more profitable "Western Markets" where it also operates its Sprint wholesale network.

 

http://www.fiercewireless.com/story/ntelos-exit-markets-eastern-virginia-sell-pcs-spectrum-t-mobile/2014-12-02

 

Positioning for a buyout by Sprint or Shentel?

Edited December 2, 2014 by WiWavelength
Migrated from a redundant, locked thread.

[S4GRU]

I think it is the investors who are freaking out -- stock down more than 50%

 

That's what Sprint wants.  Drive down the price.  The assets are worth more than the cash in the long run.  Without those assets, the value of nTelos drops accordingly.  So the stock price is going down.  Investors know that their long term investment in nTelos is now hindered with just a network only Sprint service agreement.  It will probably drop more as they announce the selling of their towers and possibly more spectrum sales.  Making the price much more palatable to Sprint for purchase.

[WiWavelength]

selling 1900 PCS to t-mobile is a fire sale price of 56 million.

 

Honestly, this is a head scratcher.  Why T-Mobile?  Why not Sprint?  Per my spreadsheets, both Richmond and Norfolk are PCS A-F block 20 MHz markets, which have little flexibility in spectrum refarming for additional LTE carriers.  Only $56 million would have been chump change for Sprint to shore up its spectrum situation in the Tidewater region.

 

AJ