Wireless carriers Ntelos, Sprint settle dispute
Ntelos gets boost from settlement of billing dispute with Sprint in Virginia, West Virginia
WAYNESBORO, Va. (AP) -- Wireless carriers Ntelos Holdings Corp. and Sprint Corp. have settled a dispute over how they split the revenue from a partnership that provides service to customers in Virginia and West Virginia.
The resolution announced Wednesday will raise Sprint's monthly minimum payment to Ntelos to $9.25 million from $9 million, according to documents filed with the Securities and Exchange Commission. That payment could still be revised in the future.
Other financial terms of the settlement weren't disclosed.
Ntelos, which is based in Waynesboro, Va., sells access to its wireless network so Sprint can provide service to customers in parts of Virginia and West Virginia. Their disagreement revolved around billing issues that arose during the third quarter of 2011 and the fourth quarter of last year.
The settlement will allow Ntelos to book an additional $9.6 million in adjusted earnings before interest, income taxes, depreciation and amortization during its current quarter ending Sept. 30.
Netlos' stock gained $1.48, or 9 percent, to $17.43 in early afternoon trading while Sprint shares shed 11 cents, or nearly 2 percent, to $6.08.
