For the second time, the Illinois Supreme Court has ordered Sprint to shut down or sell its Nextel assets in areas where wireless affiliate iPCS does business.

However, the court extended the deadline for Sprint to comply with the order by six months.

The high-stakes legal battle goes back to 2005 and Sprint’s ill-fated purchase of Nextel Communications. IPCS, which provides Sprint service in 81 mostly smaller cities, contended in its lawsuit that Sprint operating and selling Nextel service in the small wireless company’s territory violated its franchise agreement.

In September, the Illinois Supreme Court upheld lower court decisions finding for iPCS.

On Wednesday, the court reaffirmed its earlier decision but gave Sprint an extra six months to divest its Nextel assets.

Analysts have suggested it’s more likely that Sprint will buy iPCS, as it has most of its other affiliates.

Timothy Yager, chief executive of iPCS, said he was happy with the court’s decision.

“We have believed from the beginning, and continue to believe, that Sprint’s merger with Nextel and its operation of the Nextel wireless network in our territory violates our subsidiaries’ management agreements with Sprint,” Yager said in a release. “We are disappointed that Sprint has been given an extra 180 days to comply with its obligations, particularly since the original order was entered in September of 2006.”

IPCS also is suing Sprint on another front, contending that its merger with Clearwire and operating and selling WiMax service in iPCS areas would violate the company’s management agreement with Sprint.

Source:kansascity