Progress on Sprint Nextel Corp.’s $14.5 billion WiMAX deal may continue for now without problems from affiliate iPCS Inc.
An Illinois circuit court said Monday that iPCS must withdraw its motion for a temporary restraining order on the deal, though reserving its right to refile, according to documents iPCS filed with the Securities and Exchange Commission. Schaumburg, Ill.-based iPCS, Sprint’s largest independent wireless affiliate, filed the emergency motion on Nov. 3. It alleges that the deal would violate affiliation agreements by creating competition for iPCS subsidiaries, which resell Sprint products and services.
Sprint plans to merge its WiMAX unit with that of Clearwire Corp., forming the new Clearwire. WiMAX offers ultra-fast, mobile Internet access and its prospects attracted an array of blockbuster investors. A vote by Clearwire shareholders, the last major approval needed before closing, is planned for Thursday.
The Federal Communications Commission approved the WiMAX deal 5-0 on Nov. 4.
The new Clearwire does not intend a commercial launch of WiMAX service in iPCS territory before July 1, and agreed to notify iPCS 60 days before launches. It also agreed not to use the closing of the deal as an argument against any fixes.
A partial summary judgment on liability issues is scheduled for Friday.
Overland Park, Kan-based Sprint is the nation’s No. 3 wireless carrier, with more than 50 million subscribers.
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