SPRINT AND OPEN MOBILE SEEK FCC CONSENT TO THE ASSIGNMENT AND TRANSFER OF CONTROL OF LICENSES AND AN INTERNATIONAL SECTION 214 AUTHORIZATION IN PUERTO RICO AND THE U.S. VIRGIN ISLANDS
Sprint PR Spectrum LLC, Nextel of Puerto Rico, Inc., Sprint Puerto Rico Holdings LLC, and SprintCom, Inc., as subsidiaries of Sprint Corporation (collectively, Sprint), and PRWireless, Inc., d/b/a Open Mobile (Open Mobile, and together with Sprint, the Applicants), have filed applications pursuant to Sections 214 and 310(d) of the Communications Act of 1934, as amended,1 seeking Commission consent to a multi-step transaction resulting in the assignment or transfer of control of licenses and authorizations to a new limited liability company, PR Wireless PR, LLC (PRW). At the conclusion of the transaction, PRW would be jointly owned (indirectly) by Sprint and Open Mobile. Sprint would have a 68 percent economic interest and a 55 percent voting interest, and Open Mobile would have a 32 percent economic interest and a 45 percent voting interest in PRW. Sprint would have majority control of the governing Board of Directors and the owners of Open Mobile would be represented on the Board and continue to be active in the management and operations of the company.
Open Mobile would assign its two Personal Communications Service (PCS) licenses, one Lower 700 MHz C Block license, microwave licenses, and an international Section 214 authorization to PRW. In addition, all of Open Mobile’s operations, including wireless network assets, employees, retail stores, and retail subscribers in Puerto Rico, would be transferred to PRW as part of the proposed transaction. Sprint would contribute seven 1.9 GHz PCS licenses, constituting all of its 1.9 GHz spectrum covering Puerto Rico and the U.S. Virgin Islands (USVI), two Broadband Radio Service (BRS) licenses and its interest as a spectrum lessee under a third BRS license (the BRS licenses and spectrum leasing arrangement provide coverage only in Puerto Rico), and microwave licenses to Sprint PR Spectrum LLC, as a wholly-owned subsidiary of PRW. In addition, Sprint would convey all of the related wireless network assets, employees, retail stores, and prepaid subscribers to PRW, and would pay a revenue-based fee to PRW for managing all post-paid subscribers.