PORTLAND, Ore.-Metro One Telecommunications Inc. reported that Sprint PCS would not renew its contract to provide enhanced directory services to the wireless operator once the current contract expires at the end of this year, though Sprint PCS has requested a transition arrangement through 2003. Sprint PCS currently provides approximately one-third of Metro One’s revenues.
The news comes on the heels of a previous announcement from Metro One last month that Cingular Wireless L.L.C., which provides about 10 percent of Metro One’s revenues, decided to not renew its contract with Metro One.
“While we are disappointed by this decision on the part of Sprint PCS, we are eager to use our strong financial position to deliver an even wider array of services to our ongoing and new customers,” said Timothy Timmins, president and chief executive officer of Metro One.
Metro One has a contract with AT&T Wireless Services Inc. that runs through 2003 and with Nextel Communications Inc. that runs through 2004.
Metro One’s stock was down more than 45 percent in early Wednesday trading to $4.95 per share following the news.
