IPCS objects to Sprint Nextel-Clearwire WiMAX plans: Affiliate’s lawsuit claims breach of agreement

Sprint Nextel Corp. affiliate iPCS Inc. filed a lawsuit against Sprint Nextel in relation to the recent partnership between the industry’s No. 3 carrier and Clearwire Corp. to bring together their WiMAX offerings under the Clearwire brand.
In the lawsuit, iPCS claims the deal breaches the exclusivity provisions of iPCS’ affiliation agreement with Sprint Nextel; and that Sprint Nextel is attempting to evade a recent court decision that requires Sprint Nextel to cede control of its iDEN operations in iPCS’ markets.
The affiliate is asking the court for a permanent injunction against the consummation of the WiMAX deal until it is modified to comply with iPCS’ current affiliate agreement with Sprint Nextel.
“IPCS believes that Sprint Nextel’s recently announced WiMAX transaction is yet another attempt by Sprint Nextel to breach the exclusivity provisions of the iPCS affiliation agreements,” iPCS said in a release. “IPCS intends to fully and aggressively protect and defend its exclusivity rights.”
IPCS is one of three remaining Sprint Nextel affiliates following Sprint Corp.’s acquisition of Nextel Communications Inc. in 2005; since the merger, the carrier has been working to gobble up its various affiliates. IPCS has been very protective of the affiliate agreement it signed with Sprint in 1999. The original agreement provided iPCS, and all other Sprint affiliates, with the exclusive right to offer Sprint-branded services in their territories.