Sprint has opted out of SpectrumCo, one of two JVs with cable operators Comcast Corp., Time Warner Cable, Cox Communications and Brighthouse (Advance/Newhouse). Sprint remains involved in an earlier JV, originally known as the Sprint/Cable JV but now referred to as Pivot; that JV focuses on the development of integrated wireline and wireless services offered by the cable partners with Sprint. Pivot is being rolled out and executives say it is on track.
The SpectrumCo partners each have the right to exit the JV under certain conditions, according to the Time Warner TWC 10Q filed with the SEC Wednesday. (Via AlleyInsider.com)Last quarter, Sprint gave 60 days notice and exercised its right to be bought out by the remaining partners. Time Warner’s share was about $30 million. SpectrumCo was the winning bidder for 137 wireless spectrum licenses in the FCC’s wireless auction last fall, spending $2.37 billion in the process. The publicized contributions to the JV were Comcast, $1.29 billion; TWC, $632.2 million and Cox, $248.3 million.
During the TWC earnings call Wednesday, TWC CEO Glenn Britt described the Sprint investment as “relatively small, just to be together with us … I think as it went along they decided that they had a better use for that capital.” He stressed that the pullout does not affect Pivot. Asked about a possible write off, he said the cable companies are still “trying to understand the best use for that spectrum, and I don