Shenandoah Personal Communications Company, a PCS Affiliate of Sprint

SprintPCS has reached an ammended agreement with Shenandoah.

http://biz.yahoo.com/prnews/040525/dctu059_1.html

http://www.shentel.com/Investors/press.cfm



In exchange for being fully participating in all SprintPCS promotions,
Sprint will decrease the amount it charges parent Shentel for "back
office" functions (i.e. billing).

Comes out to over $500,000 / year


With Shenandoah already profitable, I should think it's to their
advantage to more easily recruit new customers by fully participating in
Sprint's promotions, so why Sprint should give them a discount for doing
so is beyond me. But maybe thats why this news was released by Shentel
and there is no Sprint press release on the story. Not good negotiating
to pay for something you might not need to pay for.




Shentel has 89,632 PCS Customers as of 3/31/2004
Took in PCS revenues of $18,221,000 for the quarter,
resulting in a profit of $1,161,000


Shenandoah therefore averages over $67/month per customer, which is
better than SprintPCS, and probably fully explains why Shenandoah is
profittable. SprintPCS averaged $61 Q1/2004.


<http://www.sec.gov/Archives/edgar/da...002681/d59504_
10-q.txt>

<http://www3.sprint.com/PR/CDA/PR_CDA.../1,3681,111202
0,00.html>

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R?bert M <[email protected]> wrote:
>
> In exchange for being fully participating in all SprintPCS promotions,
> Sprint will decrease the amount it charges parent Shentel for "back
> office" functions (i.e. billing).
>
> Comes out to over $500,000 / year
>
> With Shenandoah already profitable, I should think it's to their
> advantage to more easily recruit new customers by fully participating in
> Sprint's promotions, so why Sprint should give them a discount for doing
> so is beyond me. But maybe thats why this news was released by Shentel
> and there is no Sprint press release on the story. Not good negotiating
> to pay for something you might not need to pay for.
>

Simple, I except that Sprint PCS believes them to have an untapped
market potential that they believe a little investment will net a lot of
return from.

- --

Thomas T. Veldhouse
Key Fingerprint: 2DB9 813F F510 82C2 E1AE 34D0 D69D 1EDC D5EC AED1

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Thomas T. Veldhouse <[email protected]> wrote:

> Simple, I except that Sprint PCS believes them to have an untapped
> market potential that they believe a little investment will net a lot of
> return from.

Hm.

Shentel sold some of their property to Verizon about 18 months ago. It
was a big deal because Verizon had no native coverage in Western Virginia,
and users there roamed analog on Shentel, which was analog-only. Verizon
converted those areas to CDMA after purchasing them.,

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