Trinsic Inc., the Florida-based CLEC that uses IP to deliver broadband and voice services, will buy Sprint Nextels local access lines for which it provides services under a wholesale, private label agreement.
The former Z-Tel Technologies Inc. made the announcement yesterday, and would not disclose the deals terms.
Trinsic says it provides wholesale services for approximately 187,000 Sprint local lines, located mostly in the eastern U.S. The deal is expected to close in early 2006, pending regulatory approval.
The deal adds to Trinsics subscriber base and increases the companys average per line margins, says Trey Davis, Trinsic CEO. While this transaction will effectively end our wholesale relationship with Sprint, we make much higher margins on retail lines than we do on wholesale lines, he adds.