Bowdeya Tweh

btweh@enquirer.com

Sprint could soon be the majority owner of Newport-based prepaid cell phone service provider i-wireless.

The Overland Park, Kansas-based company is in the final stages of regulatory review on a deal where Sprint would acquire a 70 percent stake in the business, i-wireless spokeswoman Jeni Kues said in a Thursday statement. 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, D.C.

But Sprint decided to pursue the deal to bring "efficiencies for both companies" on things such as acquisition costs, device purchasing scale and working capital flexibility, said Dow Draper, president of the company's prepaid division, in a statement earlier this year.

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.

The new company would maintain its current corporate headquarters in Northern Kentucky, Kues said. I-wireless' headquarters are in office space at Newport on the Levee.

Cincinnati Bell launched i-wireless as a prepaid wireless telephone program in 1999. With its national distribution reach, Kroger was among the early retail platforms Cincinnati Bell identified to sell the i-wireless service to consumers. Eventually, Kroger decided to become an investor in i-wireless in December 2007.

“This alliance will create a vibrant competitor ready to embrace a modernized Lifeline program,” McAleese said in a May statement. “As the category transitions to broadband, we’re enthusiastic about the potential to help customers more fully participate in today’s digital economy by making access to employment, education and healthcare services more affordable to low-income consumers.”