Home » Boost Mobile »Competition »Consumer News »Dish Network »Public Policy & Gov't »Rural Broadband »Sprint »T-Mobile »Video »Wireless Broadband » Currently Reading:

Justice Dept. Ready to Approve T-Mobile/Sprint Merger

The Justice Department has helped engineer an approvable merger deal between T-Mobile and Sprint that will get antitrust regulators’ blessings as early as tomorrow, according to a report in the Wall Street Journal.

The sticking point that held up merger approval for weeks was the divestiture of certain wireless assets to Dish Network, which claims it will temporarily use Sprint and T-Mobile’s wireless networks to offer a new nationwide “fourth option” for cell phone service. Dish’s new cell phone service will come from a $1.4 billion acquisition of prepaid carrier Boost Mobile, which currently relies on reselling Sprint’s 4G network. Dish would inherit Boost’s nine million customers. Dish will also be able to lease access to T-Mobile and Sprint’s existing wireless networks for up to seven years while it builds out its own network of cell towers. The deal also includes a guarantee that Dish can pay $3.6 billion to acquire 800 MHz wireless licenses held by Sprint.

The Justice Department claims that lower frequency spectrum will allow Dish to service rural communities, assuming Dish is willing to invest in cell tower construction in high cost, low return areas.

Regulators in the Trump Administration’s Justice Department claim shaving assets from a super-sized T-Mobile will preserve the competition that will be lost when Sprint becomes a part of T-Mobile. But Dish will emerge as a miniscule player with only a fraction of the 100+ million customers that AT&T and Verizon have, and at least 80 million customers signed with T-Mobile. One of the core arguments T-Mobile and Sprint made in favor of their merger was that each was too small to afford to deploy 5G service quickly and efficiently. Dish will have even less money to build out a basic 4G wireless network.

Another merger requirement for the combined T-Mobile and Sprint will be mandatory support for eSIM, which allows consumers to change wireless carriers quickly without investing in a physical SIM card. But that requirement will not impact AT&T or Verizon Wireless, which both continue to push physical SIM cards on the much larger customer bases.

If the Justice Department does publicly approve the merger, the last hurdle the wireless companies will have to overcome is a multi-state lawsuit filed by attorneys general that argue the merger will impact low-income customers and is anti competitive. That court case is unlikely to be heard until late fall at the earliest.

CNBC’s David Faber reports that T-Mobile and Sprint have settled with the Department of Justice to go through with their merger deal. (6:14)

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of

Search This Site:

Contributions:

Recent Comments:

  • James Phares: Unfortunately, in my location, Spectrum is still my best Internet option because the only other broadband option is AT&T. At least I'm able to sa...
  • Paul Houlw: What I can't get... How come we hear about "the race to 5G?" all the time but there's never been talk about a "race to fiber?"...
  • Cristian: Can some one plz tell me if i paid for new spectrum services i paid $181 ,3 days later they canceled my installation and said i was gonna get a refu...
  • Rob Green: No they don’t...
  • John: They get away with it because the government protects them and not the consumer. We all know that those at that business that are making millions in s...
  • AM MA: I hate Charter/Spectrum. They are incredibly dishonest. At times the government needs to step-in and deal harshly with such company's. I had internet ...
  • Barb: My spectrum just went up is it going up again?...
  • NJ Orlando: I did that as well last year. The problem is, they will only do that for you one time in the life of you being a customer. I am not paying $70 just fo...
  • Dave Lee: I am 59 years old and have never ever subscribed to any cable tv of any kind "ever" in my life. I live in a small town about 35 miles north of St. Lo...
  • Chrys: I will NEVER use or recommend Spectrum again! Shady and unethical practice of charging for services never received when terminating service. It is wr...
  • JAMES: I am not a customer. Not only do we get Spectrum ads in the mail every few days at our residence, today they mail us a Spectrum Business 5x6 card cove...
  • Henry: Vandon how much is Granite paying you to post these messages on everyone's comment? Granite only resales Frontiers services.......you should get a re...

Your Account: