Sprint wants majority stake in Kroger's i-wireless

Sprint could soon be the majority owner of Newport (KY)-based prepaid cell phone service provider i-wireless. The Overland Park (KS)-based company is in the final stages of regulatory review on a deal where Sprint would acquire a 70 percent stake in the business. Kroger and Genie Global Inc., which jointly own i-wireless, would each retain a 15 percent stake in the company. Sprint initially announced the deal in May. Financial terms of the deal were not disclosed. Sprint has had a partnership with i-wireless for several years, serving as its network provider. I-wireless serves customers in 42 states and Washington (DC).

Sprint needs the blessing of federal regulators to merge its Assurance Wireless business and i-wireless' Access Wireless into one company. I-wireless Founder and CEO Paul McAleese would continue to run the new company. Both businesses are participants in the federal Lifeline program, which was established more than 30 years ago to ensure low-income consumers could have affordable access to phone service. Sprint also told regulators that i-wireless customers who receive 250 minutes on their Lifeline service plan would be upgraded to the Assurance Wireless plan, which offers existing subscribers 350 minutes per month.