Sprint Corp (NYSE:S) is a company that focuses in the delivery of telecommunication and internet services. The business guru has its headquarters in Overland Park, Kansas. This company has today signed a lease agreement with T-Mobile Inc (NASDAQ:TMUS).
Current state of affairs
T-Mobile has pronounced its Q3 2018 results and they provide a lot of information regarding its progress. For instance, the business guru has managed to establish a 4G LTE network extending to cover about 324 million people. Reports indicate that almost 1,500 towns and cities stand to benefit from the great coverage.
Several market observers in a joint statement have applauded T-Mobile for signing a reciprocal lease agreement with Sprint. The terms of the agreement provide that each of the parties has its own rights. Each involved party gets to freely use a portion of the other’s spectrum.
The agreement happens to be quite elaborate in nature. Sprint will give out about $533 million, not forgetting that it will also provide the offsetting amount. That will of course be in line with T-Mo’s spectrum lease. The activities kick start from the fourth quarter of this particular year.
A closer outlook
The filing clears the misconception that Sprint and T-Mobile’s agreement passes for an acquisition of spectrum licenses. A Sprint official says that most of the details in line with this particular deal happen to be inconsequential.
An official working with AllNet Insights & Analytics Brian Goemmer reveals crucial details about the deal. According to the official, the agreement hasn’t yet found its way into the FCC filings. This official admits that the $533 million associated with the deal is quite large. Goemmer outlines that it must be involving quite a large number of leases.
T-Mobile seeks to establish that that the lease agreement with Sprint is just that. It fights off the perception of people mistaking it for a merger with the company.
T-Mobile has been rather selective in the answering of questions. The company seems to be out rightly ignoring questions coming from officials from particular companies. This business guru shuns away from answering questions from companies that ignored conference calls.