Ntelos will wind down its network and retail operations in its eastern markets over the next year and transition its subscribers to another, unnamed carrier. The shutdown is expected to cost around USD 55 million. In the western markets, Ntelos plans to strengthen its position with the expansion of LTE services, improved retail performance and enhanced service capabilities. The western markets already represent 59 percent of its customers and 69 percent of its cell sites.
In addition, Ntelos said it's exploring potential opportunities to monetize other non-core assets, including the sale of owned towers and undeployed spectrum. The strategic shift will not impact the company's 2014 outlook for adjusted EBITDA of USD 128-132 million and capex of USD 105 million. However, it does expect to book impairment charges in the final quarter on some assets in the eastern markets and the spectrum being sold. For 2015, Ntelos forecast adjusted EBITDA of USD 100-108 million.
