The Sprint/T-Mobile merger finally went through in April and we’ve been slowly seeing the effects of it. While T-Mobile’s big 5G plans will take some time to develop, we’ve already seen the carrier expand its 5G network with its newly acquired spectrum from Sprint. One part of the puzzle that allowed the merger to happen in the first place was Dish Network agreeing to buy Sprint’s prepaid business, including Boost Mobile and Virgin Mobile.
Back in July of 2019, the U.S. Department of Justice approved the merger after Dish Network agreed to acquire Boost Mobile, Virgin Mobile, and Sprint’s prepaid business. Amazon was initially reportedly interested in scooping up these 3 sets of customers, but ultimately Dish stepped up to the plate. We now know that the deal with Dish will finally happen in two weeks, on July 1st, according to SEC filings.
We don’t have all the exact details, but it was previously reported that Dish Network agreed to spend $1.4 billion for Sprint’s prepaid business. According to Fox Business‘s Charles Gasparino, the Department of Justice forced Dish to complete the deal after it was reportedly trying to negotiate better terms.
According to details from the deal last summer, Sprint and T-Mobile will be required to provide at least 20,000 cell sites and hundreds of retail locations to Dish Network. T-Mobile is also required to give Dish “robust” access to its network for 7 years while Dish builds out its own 5G network. This aid is due to the DOJ wanting to maintain four major carriers in the U.S., with Dish stepping into that fourth role.
Will Dish actually be able to fill the hole left by Sprint? Only time will tell, but it won’t happen overnight if it does.
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