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Note 19 - Subsequent Events
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Subsequent Events [Text Block]
1
9
.
Subsequent Events
 
On
July 2, 2019,
the Company, entered into a
five
-year wireless wholesale agreement (the “Verizon Agreement”) with Cellco Partnerships d/b/a Verizon Wireless (“Verizon”). The Verizon Agreement provides for Ting to purchase and resell wireless services on the Verizon mobile network in the United States with services expected to be operational by late
2019.
The Verizon Agreement includes certain minimum spend requirements which increase annually throughout the
five
-year contract term.
 
Concurrent with the Verizon Agreement, the Company notified T-Mobile that it does
not
intend to renew its wholesale services agreement dated
December 8, 2014,
as amended by a Third Amendment dated
April 20, 2018 (
as amended, the “T-Mobile Agreement”). The T-Mobile Agreement expires on
December 19, 2019.
Under the terms of the T-Mobile Agreement, the Company has a
twelve
-month run-off period to migrate the customers on the T-Mobile network to another network. The Company will continue to have minimum spend requirements with T-Mobile through
December 19, 2019
with current wholesale pricing remaining in effect during the run-off period in
2020.
The Company expects to incur primarily marketing related costs to migrate Ting customers using the T-Mobile platform to
one
of the Company’s alternative platforms, now including Verizon.
 
On
May 31, 2019,
the Company reached an agreement with STS Media Inc., an MVNO operator doing business as Freedom Pop and Unreal Mobile brands, acquiring the right to approximately
150,000
mobile subscribers on the Sprint network for a purchase price of
$3.6
million.  The migration of these customers commenced in
July 2019
with subscribers having the option to accept the Ting offering or cancel or port their service elsewhere. As a result, the actual number of subscribers that continue their service with Ting is expected to be a smaller portion of the initial acquired subscriber base.   As part of the agreement, the Company advanced
$2.5
million to STS Media Inc. in the
second
quarter of
2019
with the residual payment to occur in the
third
quarter of
2019
upon commencement of the migration.