Sprint Nextel bails out of cable JV
Sprint Nextel has opted out of its spectrum-bidding JV - dubbed SpectrumCo - with cable operators Comcast, Time Warner Cable, Cox Communications and Bright House Networks (Advance/Newhouse).
Each JV partner has the right to exit the JV under certain conditions, according to the 10Q TWC filed with the SEC on Wednesday. Sprint gave notice that it would exit about two months ago. TWC said it will contribute about $30 million in Q3.
TWC’s CEO Glenn Britt, during the company’s earnings call, stressed that the pullout will not affect Pivot, the integrated wireline and wireless service offered by the cable partners that is currently being rolled out.
Sprint was a non-voting, minority shareholder and owned about 5 percent of the company. It is unlikely that Sprint will bid in the upcoming 700 MHz spectrum auction.
SpectrumCo was the winning bidder for 137 wireless spectrum licenses in the FCC’s wireless auction last fall, spending $2.37 billion. Publicized contributions to the JV were Comcast with $1.29 billion, TWC with $632.2 million and Cox with $248.3 million.