Cricket Communications has signed a five-year wholesale agreement (MVNO) with Sprint, which will allow the company [Cricket] to offer its products and services over Sprint’s 3G network throughout the U.S.
Exact financial details of the deal have not been disclosed but we are definitely eager to see whether this semi-MVNO model can work for Cricket. The way I see it, with this agreement, Cricket expands its user base to cover the areas where it doesn’t have infrastructure developed. It’s definitely unique, as we haven’t seen similar hybrid models in the industry thus far.
Also as part of the agreement, Cricket has made commitments to deliver minimum levels of revenues to Sprint. Moreover, it will realize improved economic terms as it grows subscribers added through the wholesale agreement.
It’s interesting and we’re eager to see whether something like this can fly. Don’t hesitate to drop your two cents in the comments form below. Your feedback is always appreciated. 😉
[Via: TradingMarkets]