Boost Mobile founder visited DOJ to talk T-Mobile-Sprint merger, making competitive carrier

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Boost Mobile founder Peter Adderton previously said that T-Mobile and Sprint should divest Boost if their merger is approved, and we now know that that’s precisely what’s going to happen. Now Adderton is involved with the T-Mobile-Sprint merger once again.

Adderton met with the U.S. Department of Justice last week to help advise the agency about T-Mobile and Sprint’s merger. Reports have said that the DOJ want T-Mo and Sprint to help create a fourth competitive U.S. carrier, and according to Bloomberg, Adderton outlined steps that the DOJ would need to take to ensure that a divested Boost Mobile could become a successful competitor.

Boost Mobile must get a favorable network access deal from T-Mobile and Sprint in order to be successful, Adderton told the DOJ. He also offered to work with T-Mobile to create such a deal before Boost Mobile is sold.

Adderton said that it’s “critical” for low income customers on prepaid plans that Boost Mobile be competitive once it’s divested. “I genuinely believe the staff at the DOJ we met with share the same concerns we do,” he added.

On Twitter, Adderton also hinted that he thinks a DOJ decision on T-Mobile and Sprint’s merger could be close (via Android Headlines). “Less than 10 days if I was placing a bet,” he teased when asked when he thinks we’ll know the fate of the proposed merger.

FCC Chairman Ajit Pai has come out in support of T-Mobile and Sprint’s merger after the two carriers pledged to sell Boost Mobile if their merger is approved, along with other conditions. The deal is still pending review by the DOJ’s antitrust staff, though, and there haven’t been any solid indications on how the DOJ might rule. Reports have suggested that T-Mobile and Sprint may be willing to divest some spectrum that could be used to build a fourth U.S. carrier if their merger is approved.

Thanks, Josh!

Source: Bloomberg

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  • You’re welcome!

    Hopefully they won’t divest too much rendering the merger pointless.

  • Kevin

    This is pointless, divesting Boost will not help customers at all or create more competition. Boost doesn’t own any spectrum or any towers. It seems to me Boost is more like a mvno of the Sprint network.

    • JG

      If I’m not mistaken, selling Boost and creating a 4th carrier are two separate conditions.

      Getting rid of Boost would help keep balance with the prepaid market (as T-Mobile owns Metro by T-Mobile). Selling spectrum would potentially allow for a new postpaid carrier to join New T-Mobile, Verizon, AT&T, US Cellular etc.

  • riverhorse

    Buy Sprint options kids. Free money.