Thursday, February 17, 2011

Sprint Nextel (S) Extends Western States Contracting Alliance Supplier Contract

Sprint Nextel (NYSE:S) announced they have extended their supplier contract with Western States Contracting Alliance (WSCA) through October 31, 2012.

States covered by the contract include Alaska, Arizona, California, Colorado, Hawaii, Idaho, Minnesota, Montana, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington and Wyoming.

According to Sprint, the value of the contract is about $360 million. Since the contract was agreed to in 2006, Sprint says it has generated close to $1.4 billion for the company.

Paget Alves, president of Sprint Nextel’s Business Markets Group, said, “It’s satisfying to extend the contract with WSCA. We’ve built solid relationships with state and local governments across the country based on trust and the expectation of mutual growth. We look forward to continuing to supply the best value, network and solutions to WSCA.”

Other wireless providers in agreements with WSCA are Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile USA.

Benefits of the Sprint agreement for the states are a 25% discount on rate plans compared to rates listed on the website of the carrier; a 39% discount on iDEN handsets and 20% discount on iDEN accessories; and a $150 service credit on CDMA devices.

Sprint was trading at $4.45, down $0.02, or 0.45 percent, as of 1:52 PM EST.

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