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Dishes must cover 70% of the country with 5G by June 2023 or pay $ 2.2 billion



Now that Dish chairman Charles Ergen has finally achieved his dream of buying a wireless provider, let's look at the transaction with T-Mobile and Sprint as it just announced yesterday. First, we know that the deal was made so that U.S. The Department of Justice (DOJ) would bless its merger of $ 26.5 billion between its third and fourth largest carriers. DOJ's role in all types of M&A agreements is to ensure that the competing landscape is not disturbed by a proposed transaction. In this specific case, the agency wanted T-Mobile and Sprint to help create a new national carrier to replace Sprint.
To create what Dish calls the "fourth nationwide facility-based network competitor," after the T-Mobile Sprint merger is actually closed (which may not happen until December). Dish will purchase Sprint's prepaid business and customers including Boost Mobile, Virgin Mobile and Sprint's own prepaid business. Three years after the acquisition of the prepaid businesses is closed, Dish will purchase 1
4 MHz of Sprint's 800 MHz range. As previously reported, it will also sign a seven-year MVNO deal with T-Mobile that allows Dish to sell mobile service to consumers under their own name while building their own 5G network; Eventually, Dish will transfer customers from T-Mobil's network to its own 5G network when it is completed. The value of the prepaid purchases is $ 1.4 billion while the spectrum purchased by the satellite content provider is valued at $ 3.6 billion.

Dish must have its 5G network covering 70% of the country by June 14, 2023

The prepaid businesses purchased by Dish have 9.3 million customers in all 50 states and Puerto Rico. All of these customers become Dish customers when the transaction ends, including those using Sprint's old network. In addition, 400 employees and over 7 500 stores will also move to Dish.

The 800MHz spectrum purchased from Sprint will eventually be added to Dish's existing low-band 600MHz and 700MHz spectrum stocks. The company was the second largest winner in the 2017 FCC auction of 600 MHz air waves that spent $ 6.2 billion compared to $ 8 billion that T-Mobile threw out. Low-band spectrum travels longer and needs better in buildings than high-frequency spectrum. The company says that the 600MHz and 700MHz air waves fit perfectly with the mid-band AWS-4 and AWS H Block mid-range spectrum it owns. However, although these mid-air air waves may not travel as far as the low-band variety, they offer higher data capacity. Dish will negotiate a deal to lease some of the 600 MHz spectrum to T-Mobile, while it will get first dibs on certain towers, networking equipment and retailers that will be closed due to the merger.

As part of the agreement, the Dish ha 5G network running and covering 70% of the US population by June 14, 2023. If the deadline is not met, the company will make a "voluntary contribution" to the US Treasury. an amount of $ 2.2 billion.

Now that the FCC and DOJ have approved the merger T-Mobile-Sprint, all that remains is the disposition of a lawsuit filed to block the merger. The plaintiffs, 13 State Attorneys and the Washington D.C. State Attorney can agree to a settlement. If they do not, a trial can start as late as December. So in other words, don't expect the merger to close immediately.


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