T-Mobile Reaches Divestiture Deal With Dish in Hopes of Gaining Approval for Sprint Merger

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T-Mobile has reached a divestiture deal with Dish Network that perhaps brings it one step closer to earning government approval for its planned merger with Sprint, reports CNBC.

Dish Network and T-Mobile had been discussing a deal for Sprint's Boost Mobile brand and some wireless spectrum to ease antitrust concerns over the merger.

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Though the two companies have much of the divestiture deal in place, sources that spoke to CNBC said that there are still issues that the Justice Department is "actively focused on" before it would allow a deal.

The government continues to be concerned that the agreement between Dish and T-Mobile isn't enough to make sure that Dish would provide meaningful competition in the U.S. cellular market.

The DoJ wants Sprint and T-Mobile to ensure that there continues to be a fourth major carrier in the United States following their merger. The combination of Sprint and T-Mobile, which would be called T-Mobile and would be led by John Legere, would leave the U.S. with three major carriers: T-Mobile, AT&T, and Verizon.

T-Mobile wants to limit Dish's spectrum capacity to 12.5 percent, while T-Mobile parent company Deutsche Telekom wants to limit any strategic Dish investor to five percent, restrictions the DoJ may not be happy with.

Sprint and T-Mobile first announced a merger agreement in April 2018, but the completion of the deal continues to require 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, and T-Mobile and Sprint have been working toward that goal.

Top Rated Comments

genovelle Avatar
21 months ago
They clearly have no idea what makes sense. Sprint will fail and cease to exist. Then there will be 3 anyway. The problem is Sprint failing and having its pieces chopped and liquidated means T-Mobile will still not be in a position to aggressively deploy 5G and will miss a once in long time opportunity to be on a level playing field. Not to mention all the jobs losses
Score: 3 Votes (Like | Disagree)
btrach144 Avatar
21 months ago

They clearly have no idea what makes sense. Sprint will fail and cease to exist. Then there will be 3 anyway. The problem is Sprint failing and having its pieces chopped and liquidated means T-Mobile will still not be in a position to aggressively deploy 5G and will miss a once in long time opportunity to be on a level playing field. Not to mention all the jobs losses

Perfectly summed up. We all know Verizon and AT&T would enter into a bidding war for the liquidation sale of Sprint. T-Mobile doesn't have that kind of money to keep up.
Score: 2 Votes (Like | Disagree)
siddavis Avatar
21 months ago

DOJ's real intention is to make sure none of T-Mobile or Sprint gain enough competition power in the US, as they are owned by German and Japanese companies respectively. The real power of our country always carefully guarantees that Anglo-Saxons keeps the ownership of the whole country.

I am mostly a fan of bureaucrats staying out of things myself, but this post is gross. There are countless examples of approvals where foreign companies take majority control. Enough with the identity crap.

Also, it is a bit ironic that the term defines a people who first originated from Germany among other areas.
Score: 2 Votes (Like | Disagree)
Victor Mortimer Avatar
21 months ago
Ugh. The LAST thing we need is more consolidation of cell carriers. This merger (and ANY merger of ANY cell phone company) should be blocked.

What needs to happen instead are breakups of Verizon and AT&T.
Score: 2 Votes (Like | Disagree)
siddavis Avatar
21 months ago
I have no idea what their current partnership with Dish entails, but it seems a bit crazy that this needs to be done to make the deal more palatable to regulators when AT&T has DirecTV and many other tentacles.
Score: 1 Votes (Like | Disagree)
BuffaloTF Avatar
21 months ago

I wasn’t aware that Dish provided cellular service. Certainly an agreement between them and T-Mobile would not result in a fourth major competitor.

They don't... but they keep buying wireless spectrum at every auction and they have a build-out requirement they're up against or they start getting penalized and ultimately may have to forfeit it all.

Moving them a brand and providing them a network hosting service makes a ton of sense. Sprint's upgrades a decade ago (I think it was that long ago?) called Network Vision put in place tower systems that were marketed as able to host any other network/spectrum/technology. So this seems like it's the perfect partner for this.
Score: 1 Votes (Like | Disagree)

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