Sprint, T-Mobile Merger Gets Help From Dish, Nearing Deal To Acquire Boost Mobile

The T-Mobile and Sprint merger approval expected from the Department of Justice will have a helping hand from satellite TV provider Dish Network in meeting the terms of approval.

This follows Dish emerging as a potential buyer for the wireless spectrum and Boost Mobile being divested by the duo to facilitate the build-out for another player.

Reports had appeared that the DOJ may give the nod to the deal in a few days.

It is reported that the satellite TV provider is ready to pay “at least” $6 billion for the spectrum and Sprint’s Boost Mobile. The announcement on the deal with the Dish network is expected shortly.

Bid to address anti-trust concerns

The latest in the Sprint T-Mobile merger news was reported by Bloomberg that said Dish Network is the front runner to purchase the assets that T-Mobile and Sprint would offload.

The two companies want to sell Boost Mobile in a bid to appease U.S. regulators who are hearing the outcry from various quarters that the merger is loaded with anti-trust concerns.

Recently, seven states led by New York and California filed a lawsuit urging regulators to block the deal on the ground that it would hurt competition in the industry.

Dish Network emerged as the top bidder for T-Mobile and Sprint assets favored by the Justice Department. Billionaire Charlie Ergen is the co-founder of the company.

The DOJ is keen to see that the U.S. maintains at least four strong wireless players.

Dish stock jumped 1.9 percent on Monday while Sprint stock gained 2.3 percent while and shares of T-Mobile soared 1.3 percent.

The T-Mobile, Sprint merger pitched in April 2018 has been insisting that the deal is aimed at building a formidable competitor to entrenched players Verizon and AT&T.

The duo argues that merger is critical for a faster 5G build-out across the United States. They have also agreed to the 5G expansion targets mooted by the Federal Communications Commission, FCC.

T-Mobile CEO John Legere publicly committed that the merged company will not raise prices for at least three years.

Amazon’s retreat

There had been rumors that Amazon would buy Boost Mobile and use T-Mobile's wireless network under a package deal.

According to reports, the new suitor Dish Network has ambitious plans and is also considering a merger with AT&T's DirecTV service.

Dish Network has been hoarding spectrum for years without building its own satellite network.

T-Mobile, Sprint and Dish did not comment.

FCC review lacked due diligence says Democrat commissioner

Meanwhile, the FCC was criticized by a Democrat commissioner for its hasty review of the Sprint Corp and T-Mobile merger plan saying Republican commissioners backed the deal without any economic and legal analysis.

FCC Commissioner Jessica Rosenworcel told a Senate Commerce Committee on June 13 that she has no economic and legal analysis paper on the deal. She criticized her Republican colleagues for announcing that they are favoring the transaction via press release.