Boston, MA 05/22/2014 (wallstreetpr) – When businesses come together they do so for their own selfish gains; selfish in the sense that they seek to create value for their customers and shareholders. If that is true, then investors must be happy about the extension of a partner between NTELOS Holdings Corp. (NASDAQ:NTLS) and Sprint Corporation (NYSE:S).
The companies just announced that their deal to tap into each other’s network and spectrum would run up to 2022. Under the latest agreement, NTLS will serve as the exclusive provider of network for Sprint in what the companies call Strategic Network Alliance (SNA).
The SNA includes Virginia and West Virginia and covers about 2.1 million people. As if that is not enough, subscribers on Sprint network will also gain access to the 4G LTE network that NTLS recently launched.
On the other hand, NTELOS Holdings Corp. (NASDAQ:NTLS) subscribers will benefit the range of the spectrum from Sprint that includes 2.5 GHz, 1.9 GHz and 800 MHz, throughout the NSA territory.
Expanded And Strengthened Network
In the face of intense competition in the U.S. telecommunications market, carriers have to look beyond the traditional practices of promotions and lower of costs.
Expanding network coverage and providing strong signals even in the busiest and the remotest of locations is what currently makes the difference for operators. For example, Verizon Communications (NYSE:VZ) recently announced the launch of its extra-fast wireless network known as XLTE in a bid to deliver high speed connection even in busy locations like New York where there have been customer complaints about its network speeds.
Verizon grew its customer-base aggressively and even went ahead of its peers to develop the largest wireless coverage. However, as it attracted more customers to its side, it realized that keeping customers satisfied means improving capacity and offering superfast connections.
As for the case of NTELOS Holdings Corp. (NASDAQ:NTLS) and Sprint, the companies do not want to wait until they start receiving complaints from their customers, and that explains why they have chosen to extend their already successful source-sharing partnership.
In addition to customers from both sides having access to upgraded and high-speed networks and easy connect to rural locations, the companies also intend to deliver the greatest customers experience at cost favorable than the competition.
Data Guzzlers
It will become easy for Sprint, which is struggling to make inroads in the U.S. lucrative telecoms industry, to attract subscribers on data guzzling smartphones to its side if its network and coverage offer a better experience than rivals. On the other hand, NTELOS Holdings Corp. (NASDAQ:NTLS)’s retail, wholesale and corporate customers will also love to connect to Sprint spectrum.
