Shentel and T-Mobile finalized the asset purchase agreement for the sale of Shentel wireless assets to T-Mobile. The deal is expected to close in 3Q 2021.
Back in August 2020, T-Mobile exercised a purchase option for Shentel wireless assets that came with T-Mobile’s acquisition of Sprint. Shentel was a Sprint affiliate, offering mobile services branded as Sprint to about 1.1 million subscribers across parts of rural Virginia, West Virginia, Kentucky, Ohio and Pennsylvania
There was some dispute in the purchase price, but that eventually got settled through an appraisal process, with Shentel and T-Mobile agreeing to value the Shentel mobile business at $1.95 billion. The finalized deal includes approximately $60 million in settlement of a waived management fee, according to a statement from Shentel.
As a part of the final agreement, Shentel also agreed not to compete, directly or indirectly, with any mobile service within the wireless coverage area that T-Mobile is acquiring. Additionally, Shentel entered into transition services agreement, where Shentel will offer services related to wireless network maintenance and certain back-office and administrative support.
The non-compete clause seems to compel Shentel to utilize its recent CBRS spectrum winnings for fixed wireless only. The company won a total of 262 Priority Access Licenses (PALs) in 74 counties in last year’s CBRS auction.
Shentel launched a fixed wireless service branded as Beam Internet. The company recently announced an expansion of the fixed wireless service. The fixed wireless service is currently available to 15K households, according to Shentel.