Sprint Corp. and cable and internet provider Altice USA Inc. entered into a multi-year wireless partnership over the weekend that will help Altice provide phone and data services to its customers. Shares of Sprint were fell nearly 12% in premarket trade on Monday. The deal, which mirrors a mobile pact Comcast Corp. has with Verizon Communications Inc. , came a day after Sprint’s potential merger talks with T-Mobile US Inc. came to an end over the weekend without a deal. T-Mobile shares were down 5%, while shares of Verizon were down more than 2% and AT&T Inc. shares were down more than 1%. Under the Sprint-Altice agreement, Sprint will allow Altice to use Sprint’s mobile network to sell service in which Altice will control mobile features, functionality and customer experience. In exchange, Sprint will use Altice’s broadband infrastructure to shore up its network. “As content and connectivity continue to converge, we believe this approach will be a model for future strategic arrangements across multiple industries including cable, tech and others.” Shares of Sprint have declined nearly 21% in the year to date. Shares of Altice, which were inactive in premarket trade, are down more than 30% in the last three months. By comparison, the S&P 500 index is up more than 4% in the last three months and nearly 16% in the year so far, while the Dow Jones Industrial Average is up nearly 7% in the trailing three months and more than 19% in the year.
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