Sprint to acquire
PrimeCo Hawaii

The wireless network
purchase is not expected to
result in any layoffs

By Rob Perez
Star-Bulletin

Sprint Corp. plans to enter Hawaii's crowded wireless phone market by acquiring an existing network rather than building one from scratch.

Sprint yesterday announced it is buying PrimeCo Hawaii's digital phone network and license for an undisclosed price.

The deal, expected to close in about three months upon regulatory approval, should have little effect on services and rates now offered PrimeCo customers, the two companies said. Also, PrimeCo's 90 employees are expected to be retained by Sprint, the companies said.

Once the two sides started discussing a possible deal more than a year ago, Sprint put on hold its plans to build a wireless network here, according to Nonie Toledo, regional vice president of Sprint Hawaii. "This gives us a jump-start into the marketplace," Toledo said.

And because Kansas City, Kan.-based Sprint has a nationwide PCS system, its entrance into the local market will "heat up the competition a lot more," she said.

PrimeCo is one of six companies now serving the Oahu market. It started offering digital service on Oahu about two years ago and has expanded to Maui as well. But Lowell McAdam, president of PrimeCo Personal Communications, PrimeCo Hawaii's parent, said the company has decided to focus on mainland markets.

Once the deal closes, Toledo said she expects Sprint's rates to be "as competitive if not more competitive" than what PrimeCo now offers.

She said it was too soon to say when Sprint will be offering service on the other neighbor islands.

At least two other companies, including AT&T Corp., have licenses to launch wireless service on Oahu.

But analysts say Oahu can't support eight companies, and they expect an industry shakeout, possibly including more acquisitions, to eventually to pare the number.