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Alamosa cuts fees with new Sprint pact

LUBBOCK, Texas-Sprint PCS affiliate Alamosa Holdings Inc. said it has amended its management and services deals with Sprint PCS for back-office billing and service charges, activation fees for new users and wholesale/resale rates negotiated by Sprint with other carriers.

The amendments reduce monthly service fees per subscriber paid by Alamosa to Sprint PCS by 70 cents and 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.

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