Sprint Buys IPCS for $426M

Sprint Nextel Corp has decided to purchase its affiliate iPCS Inc. for $426 million, a move that will mark the final acquisition of Sprint’s last major independent affiliate and the end to a legal battle between the two companies. Sprint’s 2005 acquisition of Nextel has led it to acquire many of its affiliates as the companies complained about the merger’s anticompetitive qualities.

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The deal will mostly allow Sprint to simplify certain parts of its business, as it will no longer have to separate the assets it held in iPCS markets. According to analysts, Sprint will now be able to focus on its most important priority, which is to work on a turnaround in its post-paid business.

Sprint has been quickly losing its valuable contract subscribers as other cell phone companies continue to attract customers by acquiring valuable exclusive deals with makers of popular cell phones. While its pre-paid business has remained strong, Sprint has begun to focus its attention on its post-paid business, hoping to regain a large portion of the market share.