PORTLAND, Ore.—Metro One Telecommunications Inc. said it reached a settlement regarding the enhanced directory assistance services it provided to former Nextel Communications Inc. customers prior to Sprint Corp.’s acquisition of Nextel last year. Sprint Nextel Corp. terminated the master contract with Metro One as of Jan. 9.
According to Metro One, the settlement calls for Metro One to provide EDA service to Sprint Nextel iDEN customers through March 31, 2006, for Metro One to be paid up to $5.75 million in three installments in the same time frame and “for the resolution of any disputes with respect to the termination.” The payments are in addition to the $2.5 million previously paid by Sprint Nextel for the transition, as well as regular contractual payments for the service.
Metro One has struggled with losing its major customers over the past few years; Alltel Corp. and the former Sprint dropped its service in 2003, and the Nextel contract accounted for more than half of its revenues for fiscal 2004. Metro One has closed call centers and recently reported that its stock is in danger of being de-listed from the Nasdaq stock exchange because it has consistently traded below $1 per share; Metro One plans to appeal the de-listing.
