EDINBURG, Va.-Rural telecommunications provider and Sprint PCS affiliate Shenandoah Telecommunications Co. signed an addendum to its management and services agreement with Sprint PCS that Shenandoah said would provide greater certainty for future expenses and revenues and simplify the methods used to settle revenue and expenses.
The addendum calls for Shenandoah Personal Communications Co. to continue to purchase back-office services including billing, customer care, collections and certain network services from Sprint PCS for a flat, lump-sum monthly rate through 2006. The company was previously charged individually for the services, and said it expects to save approximately $120,000 per month with the new agreement.
In addition, the addendum extends the current reciprocal roaming rates between Shenandoah and Sprint PCS of 5.8 cents per voice minute and two-tenths of a cent per kilobyte of data to the end of 2006, and provides a framework to determine rates for Sprint PCS provided services and roaming rates after 2006.
Shenandoah noted the deal also includes a most-favored-nation provision with respect to similar agreements with other Sprint PCS affiliates until the end of 2006 and defines certain company rights related to limiting capital spending and customer program costs.
