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Dish Network Nearing Deal for Boost Mobile as T-Mobile and Sprint Unload Assets for Merger Approval
Dish Network is close to securing a deal to pay $6 billion for Sprint's Boost Mobile brand and wireless spectrum, reports Bloomberg.
Sprint is selling Boost Mobile in an effort to unload assets to gain regulatory approval for its upcoming merger with T-Mobile. The two companies have been aiming to sell Boost Mobile to appease U.S. regulators who believe the merger raises antitrust concerns.
The United States Justice Department wants Sprint and T-Mobile to ensure there continues to be a fourth major carrier in the country as the combined T-Mobile and Sprint company would leave just AT&T and Verizon as the other major carriers. Sprint and T-Mobile's combined company, set to be called T-Mobile and led by John Legere, would have close to 100 million customers.
Sprint and T-Mobile first announced a merger agreement in April 2018, but the completion of the deal requires government approval. As of May, U.S. regulators were said to be "leaning against" approving the merger unless some of T-Mobile and Sprint's assets were sold off.
Dish may be planning to announce a deal as soon as this week, according to sources who spoke to Bloomberg. The terms of the deal have not yet been finalized and it could still fall through, however.
Sprint is selling Boost Mobile in an effort to unload assets to gain regulatory approval for its upcoming merger with T-Mobile. The two companies have been aiming to sell Boost Mobile to appease U.S. regulators who believe the merger raises antitrust concerns.
The United States Justice Department wants Sprint and T-Mobile to ensure there continues to be a fourth major carrier in the country as the combined T-Mobile and Sprint company would leave just AT&T and Verizon as the other major carriers. Sprint and T-Mobile's combined company, set to be called T-Mobile and led by John Legere, would have close to 100 million customers.
Sprint and T-Mobile first announced a merger agreement in April 2018, but the completion of the deal requires government approval. As of May, U.S. regulators were said to be "leaning against" approving the merger unless some of T-Mobile and Sprint's assets were sold off.
Dish may be planning to announce a deal as soon as this week, according to sources who spoke to Bloomberg. The terms of the deal have not yet been finalized and it could still fall through, however.
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13 weeks ago
Hello DOJ: We don't need 4 major carriers... News flash, Sprint and T-Mobile each by themselves are not major carriers, they are minor carriers. We actually need them to merge to become big enough to actually compete with the likes of AT&T and Verizon. Their merger will HELP foster competition in the marketplace, not hurt it. The only caveat (which it looks like might have been taken into account here) is protection for MVNOs, and that should hold true for all carriers.
13 weeks ago
If Sprint \ TMo merger is too big, than why isn't Verizon big enough to split up? Why are they allowed to have their own pre-pay carrier?
13 weeks ago
My wife and I are on the T-Mobile senior plan. Unlimited calls, texts, and data for 2 phones at $60.00/month. A real bargain compared to what we would have to pay AT&T or Verizon for the same service.
13 weeks ago
I just really hope the Sprint/T-Mobile merger doesn't mess up my current deal. Paying $80/month for 2 phones with unlimited data and an Apple Watch. Can't beat it.
13 weeks ago
Boost mobile didn’t own any actual towers I thought. This just means they’ll still be another MVNO of Sprint
13 weeks ago
Hello DOJ: We don't need 4 major carriers... News flash, Sprint and T-Mobile each by themselves are not major carriers, they are minor carriers. We actually need them to merge to become big enough to actually compete with the likes of AT&T and Verizon. Their merger will HELP foster competition in the marketplace, not hurt it. The only caveat (which it looks like might have been taken into account here) is protection for MVNOs, and that should hold true for all carriers.
T-Mobile has grown a ton, by no means some third rate carrier as you make it seem. Tons of low band spectrum and with the 700 MHz rollout coverage has improved significantly over the past 5 years. It’s not going to foster more competition by reducing to three carriers. TMO for one is slowly raising rates already as expected by their growth. They got the greatest share of the 600 MHz band as well in auction, if anything they’re pretty competitive with the other two top ones in most places.
Right now I pay $130 after taxes for 4 lines and international calling (Global, not just Mexico and Canada) (all lines) as part of my grandfathered T-Mobile Simple Choice plan from 2014. LTE to 4GB then 2G for unlimited on all lines. They’ve gotten really far in terms of coverage and speeds since then so they have upped the pricing of plans for newcomers.
13 weeks ago
The United States Justice Department wants Sprint and T-Mobile to ensure there continues to be a fourth major carrier in the country as the combined T-Mobile and Sprint company would leave just AT&T and Verizon as the other major carriers.
How would a standalone Boost Mobile be a viable 4th carrier if the argument in favor of a Sprint/T-Mobile merger is that Sprint won't be a viable competitor on it's own?
A standalone Boost Mobile is weaker than Sprint.
13 weeks ago
I've been with TMo for 4-5 years now and have been very pleased. I just received a text that 3 of my lines are bumped up to unlimited data at no charge. Also love their TMo Tuesday freebies, namely the monthly Redbox rentals, also racked up quite a bit of Dunkin Donut giftcard balance while that lasted.
I am unsure how I feel about this merger. Less competition almost always amount to higher costs and/or lower services.
I am unsure how I feel about this merger. Less competition almost always amount to higher costs and/or lower services.
13 weeks ago
Boost mobile didn’t own any actual towers I thought. This just means they’ll still be another MVNO of Sprint
Dish has a ton of stock piled spectrum though, so there's reasonable chance they could build out their own network over time using that. There also may be a equipment swap deal too where Dish acquired the towers which Tmobile plans to sunset after the merger is complete.
13 weeks ago
I like your logic! Maybe a merger could result in better, stronger coverage w/ sensible pricing with Mr. Legere as boss.
I agree also. Why is it that the government gets to decide who is the largest carrier and that three major companies isn't allowed. Sprint could simply close it's doors and then there would only be three major networks. What would the government do then? Buy Sprint and become a 4th carrier themselves. Oh wait! They sort of tried that with obamacare crap and we see how that turned out. Higher prices and worse coverage for most people.[ Read All Comments ]
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