LUBBOCK, Texas-Sprint PCS affiliate Alamosa Holdings Inc. said it has amended its management and services agreements with Sprint PCS relating to back-office billing and service charges, activation fees for new subscribers and wholesale/resale rates negotiated by Sprint PCS with other carriers.
The amendments reduce monthly service fees per subscriber paid by Alamosa to Sprint PCS by 70 cents, call for a one-time fee of $23 per each new subscriber payable by Alamosa to Sprint PCS to cover certain customer acquisition costs instead of the previous variable rate fees. Alamosa also has agreed to a pass-through rate for all new wholesale and resale rates negotiated by Sprint PCS with other carriers for wireless service on the Sprint PCS network through 2006. Alamosa noted the amendments were possible due to recent cost-cutting efforts by Sprint PCS, including the outsourcing of some its back-office services.
The latest amendments build on previous agreements between the two companies in December of last year that established service fees through 2006 and an agreement in March that extended the reciprocal roaming rate until 2006. Sprint PCS also announced similar amendments with affiliate Shenandoah Telecommunications Co. in late May that called for Shentel to participate in all Sprint PCS’ growing reselling programs through 2006 and a reduction in the monthly service fee per subscriber paid to Sprint through 2006 for back-office services.
Alamosa also set a record date of July 19 for the third dividend payment on its 7.5-percent series B convertible preferred stock. The carrier added the dividend would be paid Aug. 2 at an annual rate of 7.5 percent of the $250 per share liquidation preference for the period from May 1 to July 31.
