EDITOR'S NOTE: This story was changed from the original to correct Boingo's closing stock price on Sept. 25.
Shares of Boingo Wireless Inc. rose nearly 5 percent on Tuesday after the Santa Monica company said it signed a deal to provide a group of mostly rural wireless telecommunications providers with additional Wi-Fi capacity.
The agreement allows members of the Competitive Carriers Association to offer Boingo Wi-Fi under their own name, an arrangement known as white-label branding. Accessing Boingo’s network will allow the carriers to reduce the wireless load on their own heavily traveled cellular networks.
The majority of CCA’s members are regional and rural providers that compete with national operators such as AT&T and Verizon Wireless, though the group also represents smaller national carriers Sprint and T-Mobile USA.
“With the ever increasing demand on wireless networks, it is absolutely critical for competitive carriers to have an offload solution," said CCA Chief Executive Steve Berry in a statement.
Boingo’s core business is operating more than 500,000 Wi-Fi hotspots worldwide, mostly in public locations such as hotels, restaurants and airports.
Shares closed up 35 cents, or 4.7 percent, to $7.85 on the Nasdaq.