Sprint spells out terms of exit from Global One

Sprint last week detailed its agreement for disengaging itself from Global One, its international partnership with Deutsche Telekom and France Telecom.

For its share in the alliance, Sprint will receive $1.13 billion in cash from its partners and have $276 million in debt repaid, according to a statement from the carrier. The transaction should be completed within the next few months.

Sprint already said it would pull out of Global One, which delivers voice and data services to corporate customers, after its merger agreement with MCI WorldCom was announced in October. Part of the agreement is to verify that Sprint customers who now use Global One's international services have a smooth transition. The agreement calls for Global One to keep servicing these customers for at least another two years.

The agreement also releases Sprint from certain exclusivity and noncompete clauses with its Global One partners but bars it from offering services that compete with certain customer contracts for one year, Sprint said.

Deutsche Telekom and France Telecom have assumed sole responsibility for financing Global One, Sprint said. The two carriers, each of which owns 10% of Sprint, have also agreed to give up their rights as Class A shareholders and resign their seats on Sprint's board of directors.