Dish will reportedly pay $5 billion for assets from T-Mobile and Sprint

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Reports in recent days have suggested that the Justice Department is close to giving its approval to T-Mobile and Sprint’s merger, and now another rumor has surfaced that suggests that the merger continues to progress.

Dish Network has reportedly agreed to a deal to buy assets from T-Mobile and Sprint. Sources speaking to Bloomberg say that Dish will pay $5 billion, consisting of $1.5 billion for prepaid businesses and $3.5 billion for spectrum. Dish is also getting a seven-year wholesale agreement that allows it to sell service using T-Mobile’s network, and T-Mobile will provide operational support for three years as prepaid customers move to Dish.

Finally, the agreement states that Dish can’t sell its assets or give control of the agreement to a third-party for three years.

Now that a deal has reportedly been agreed upon by T-Mobile, Sprint, and Dish, it’s expected that the Justice Department will give the green light to T-Mo and Sprint’s merger. Today’s report says that Justice Department approval could come as soon as Thursday.

FCC Chairman Ajit Pai came out in support of the T-Mobile-Sprint merger back in May after T-Mobile committed to selling Boost Mobile and to not raise prices for three years. Meanwhile, reports have said that Justice Department antitrust chief Makan Delrahim wants T-Mobile and Sprint to help create a fourth competitive U.S. carrier before he’ll approve the merger. It’s been expected that Dish would strike a deal to become that fourth carrier thanks to its existing collection of spectrum, but there’s been a lot of back and forth lately as T-Mobile and Sprint have been trying to work out a deal with Dish chairman Charlie Ergen.

Getting Justice Department approval would be major progress for T-Mobile and Sprint’s merger, but the deal is still facing a lawsuit from more than 10 state attorneys general who want to block the merger. They argue that the deal will harm competition and raise prices for consumers.

Source: Bloomberg

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  • Jay Holm

    Great!!! Now get the dang states out of the way, companies merging is between the FCC/DOJ/SEC!!!

    • Ummon

      No way, they gotta score them political points with 2% of their constituents!

  • Anonymouse

    I hope there’s a “use it or loose it” provision in the contract to finally force DISH to build their own network.

    • ck125

      Eh not like anyone enforces it anyway. Dish was supposed to have their network built out by now with the spectrum they bought and all they do is sit on it.

  • Jay Holm

    Hopefully at some point in the next week or so, we will know the details of the spectrum T-Mobile is divesting to Dish. . .I would like to know. Hopefully ZERO 600mhz/700mhz, and 2.5Ghz….none of those bands!!!

    • No 800hmz either. Maybe what over lapses but in rural nope

      • Robert Roll

        i read somewhere that the 850Mhz Spectrum is being divested to Dish but they are keeping there 600Mhz and 700Mhz they have over 20Mhz of bandwidth of 600 nation wide anyway in almost all the markets except a few … Sprint only had 5Mhz of 850 bandwidth anyway

    • Robert Roll

      hopefully none of the of the AWS spectrum bands 4 and 66 (1700/2100mhz 4 is a Subset of 66) … Sprint had no holdings in this however the PCS Spectrum Bands 2 and 25 (1900mhz 2 is a Subset of 25) both T-Mobile and Sprint has holdings sprint only had 5mhz of bandwidth t-mobile has more here

      • Sharti24

        Sprint only has 5×5 mhz 1900mhz in both band 2 and 25? Thought they had way more than that

        • Robert Roll

          I think that’s nation wide but I know in my area that’s all they have here except there 2.5ghz they own it all

      • Robert Montoya

        Dish is paying 5 billion, tmo isn’t giving up bands. They’re giving up customers. Boost = 5 million and they’ll share sprints old 4g and 5g bands

  • Some extra cash is always good.

  • fentonr

    If this goes through without something getting renegotiated (excluding as the article mentions this will impact the sale price) or the terms changing I’ll be surprised. I don’t envy Legere and Claure. Ergen and Delrahim are snakes, I wouldn’t trust them as far as I could throw them to not pull the rug out from under things at the last minute.