ATLANTA-Sprint PCS affiliate AirGate PCS Inc. reported changes to its Sprint management and services agreements regarding back-office billing and service changes, new customer activation fees and roaming rates, which the carrier said would provide “immediate substantial savings to AirGate’s cost structure.”
AirGate noted the changes were effective Aug. 1 of this year through the end of 2006, and that it would detail the amendments in a Form 8-K being filed today with the Securities and Exchange Commission.
As part of the changes, AirGate also announced it has executed a settlement agreement and mutual release with Sprint that will result in the settlement of various financial and contractual disputes between the two parties.
“We are very pleased to have reached this agreement with Sprint, which solidifies our business partnership,” said Thomas Dougherty, president and chief executive officer of AirGate PCS. “Not only will AirGate achieve significant cost savings, but this established rate structure also provides us with better clarity on our key operating metrics going forward.”
Dougherty added the financial clarity gained from the changes would also allow AirGate to explore options for refinancing its debt. AirGate’s stock was trading up more than 2 percent early Tuesday at $17.94 per share.
Sprint PCS announced similar amendments with affiliates Alamosa Holdings Inc. and Shenandoah Telecommunications Inc. earlier this year, including the extension of fixed roaming rates through 2006 as well as reductions in back-office fees.
