Sprint today announced its deal with i-wireless to merge Sprint’s Assurance Wireless and i-wireless’ Access Wireless to lead in the wireless Lifeline services industry.
i-wireless founder and CEO Paul McAleese will head i-wireless, the new name of the entity. Sprint will own 70 percent of the business, with i-wireless owning the balance 30 percent.
The partnership will combine Sprint’s position as a network provider with i-wireless’ distribution strength. i-wireless will continue to operate on the Sprint network.
Assurance Wireless and Access Wireless are participants in the Lifeline Assistance Program supported by the Universal Service Fund (USF), which is designed to ensure that quality telecommunications services are available to low-income consumers at affordable rates.
“Sprint has enjoyed its relationship with i-wireless for many years,” said Dow Draper, president of prepaid for Sprint. “We’re excited to move forward with this strategic partnership, which will result in efficiencies for both companies, including financial synergies, such as acquisition costs, device purchasing scale and working capital flexibility.”
