iPCS Sues to Block Sprint Nextel/Clearwire WiMAX Deal
Published on: 11th May 2008
Note -- this news article is more than a year old.
iPCS, the largest independent Affiliate of Sprint Nextel, has announced that three of its subsidiaries filed a complaint in the Circuit Court of Cook County, Illinois against Sprint Nextel and certain of its related entities concerning the company's recent WiMAX announcement.
It is worth noting that the first salvo in this particular legal battle was fired by Sprint Nextel last week when Sprint Nextel filed a complaint for declaratory judgment in the Court of Chancery of the State of Delaware seeking to have the Court rule that the proposed WiMAX transaction is not a violation of the Sprint Nextel agreements with iPCS.
Ever since Sprint merged with Nextel - the two companies have been fighting in the courts over an exclusive distribution deal for Nextel products which iPCS was granted - and which it claims was broken by the Sprint - Nextel merger.
iPCS now claims that Sprint Nextel's WiMAX transaction with Clearwire would breach the exclusivity provisions of IPCS's affiliation agreements with Sprint Nextel; and that Sprint Nextel is attempting to evade a legal ruling relating to the Sprint-Nextel merger and which requires Sprint Nextel to cease owning, operating and managing the Nextel network in iPCS Wireless's territory.
iPCS says that it is seeking a declaratory judgment that Sprint Nextel's consummation of the recently announced Clearwire/WiMAX transaction, and its plan to compete against iPCS, will breach the iPCS agreements with Sprint Nextel. iPCS is asking the Court for a permanent injunction enjoining Sprint Nextel and those acting in concert with it from consummating the WiMAX transaction until such transaction has been modified to comply with the iPCS agreements with Sprint Nextel.
iPCS noted that it has been involved in litigation with Sprint Nextel for nearly three years about the exclusivity provisions of its affiliation agreements.