The Ministry of Justice plans to approve the T-Mobile / Sprint merger as part of a settlement that deals with the sale of spectrum licenses, wholesale access, and a prepaid wireless business to the Dish Network, The Wall Street Journal reported today.
"Companies have spent weeks negotiating with antitrust prosecutors and each other for the sale of assets to Dish to satisfy the concerns that the more than $ 26 billion merging of wireless carriers # 3 and # 4 with subscribers would damage the competition," "wrote the journal and quoted people who are familiar with the case.
As a result of these negotiations, the DOJ is "ready to approve" the merger and could announce a settlement with T-Mobile and Sprint "as soon as this week, but the time is still uncertain," the journal wrote.
Although DOJ approves the merger, T-Mobile and Sprint will still have to defend it in court because A lawsuit brought by 1
Dish, the second largest satellite TV provider after AT & Ts's DirecTV, has purchased range for years without launching mobile phone and data service. Earlier reports of a settlement involving Dish said Dish would gain wholesale access to the T-Mobile / Sprint network, the spectrum and the prepaid wireless operator Boost Mobile. Boost is owned by Sprint and is a network reseller.
Today's Journal report said the pending settlement "ensures that Dish acquires prepaid subscribers," but did not say if they will come from Boost. Boost's engagement seems likely, given that the Federal Communications Commission Chairman Ajit Pai's approval of the merger T-Mobile / Sprint is conditional on the sale of Boost Mobile and a guarantee that Boost will have access to the T-Mobile / Sprint network.
"Dish would also get a multi-year agreement to use the wireless companies' networks while building dedicated infrastructure," journal wrote. The report did not say how much range Dish will get.
Dish to Pay $ 5 Billion
Bloomberg reported last night that Dish "agreed to pay $ 5 billion for wireless assets" in its deal with T-Mobile and Sprint. The deal includes $ 1.5 billion for prepaid mobile assets and $ 3.5 billion for spectrum licenses.
"Under the agreement, Dish cannot sell the assets or entrust the control of the agreement to a third party in three years," Bloomberg wrote.
Dishwashing by becoming an important carrier can solve the problem caused by the T-Mobile / Sprint merger, that it would reduce the number of large nationwide competitors from four to three. But Dish has famously dragged its feet into using its assets to build a wireless network, with T-Mobile CEO John Legere calling Dish a spectrum hoarder in February this year. Even during a best case scenario presented by the settlement with the government, it sounds like it can take several years to build its own network and become a major threat to AT&T, Verizon and the combined T-Mobile / Sprint.