Sprint, Open Mobile agree Puerto Rico, USVI mobile merger

24 Feb 2017

Sprint and PR Wireless, trading as Open Mobile, have struck an agreement to combine their respective businesses in Puerto Rico, together with Sprint’s business in the US Virgin Islands, into a new joint venture. The merger seeks to create a stronger competitor offering post-paid, pre-paid, business and Lifeline (a government subsidised scheme for low-income citizens) services, and the transaction is expected to deliver increased scale, an expanded distribution platform, improved network capacity and an enhanced spectrum position.

Following the closing of the transaction, Sprint and Open Mobile will have a 68% and a 32% economic interest in the enlarged company, and a 55% and 45% voting interest, respectively. The deal is subject to review and approval by the Federal Communications Commission (FCC), along with other regulatory authorities, which is expected to take several months.

Both companies will continue to operate separately in the market under their current brands until the transaction closes. No action is required by existing Open Mobile, Sprint, Boost Mobile or Virgin Mobile customers at this time, and all customers in Puerto Rico and the USVI can expect a smooth transition, Sprint notes.

Puerto Rico, Virgin Islands (U.S.),Open Mobile (part of PRWirelessPR), Sprint Corporation, Sprint Corporation (USVI), Sprint Puerto Rico (part of PRWirelessPR),



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