With Sprint and T-Mobile ending their merger talks, it would appear that Sprint has triggered its contingency plan which allows it to leverage Altice’s cable network to develop and provide 5G connectivity.
U.S. cable operator Altice USA is set to sell its its mobile service on Sprint Corp’s network under a new multi-year agreement.
The news comes in the wake of Sprint and T-Mobile US Inc ending their merger talks.
Under the terms of the agreement, Altice, the fourth biggest U.S. cable operator, will get to use Sprint’s network to provide voice and data services in the U.S.
Altice did not provide any timeline on when it will introduce its services on Sprint.
Significantly, the deal, also enables Sprint to use Altice’s cable infrastructure to transmit cellular data and develop the next gen 5G network.
SoftBank Group Corp, Sprint’s majority owner, had stated on Sunday, that it intends to increase its stake in Sprint but would keep ownership of the outstanding common stock under 85%, a move that steers clear of triggering a tender offer for the remaining shares.
SoftBank’s currently owns 82% of Sprint.