T-Mobile reportedly working on final details of merger concessions with DOJ, decision could be close


Details on T-Mobile, Dish Network, and the U.S. Department of Justice’s negotiations regarding the T-Mo-Sprint merger have been trickling out lately, and today a new report has come out that claims that the DOJ could finally approve the deal soon.

The Justice Department is ironing out the “final issues” with T-Mobile on an agreement that will make Dish Network a fourth competitive U.S. carrier, says Bloomberg, which we’ve heard is critical for the DOJ before it approves the T-Mobile-Sprint merger. The final details are not thought to be insurmountable, and it’s said that a DOJ decision on the T-Mobile-Sprint merger could come as soon as next week.

T-Mobile is thought to be offer enough concessions to get DOJ approval for its merger while also not giving up so much that it makes Dish into a formidable rival. Dish will buy spectrum from T-Mobile and Sprint and get a six to seven year wholesale agreement that’ll allow it to sell T-Mo service under the Dish brand. Additionally, the deal will include a three-year service agreement that’ll see T-Mobile give operational support as prepaid customers move to Dish.

The current deal terms will see Dish Network buy the Boost Mobile, Virgin Mobile, and Sprint Prepaid brands.

While the T-Mobile-Sprint merger has already gotten the support of FCC Chairman Ajit Pai, it still needs to be approved by the Department of Justice and the California Public Utilities Commission before it can be completed. It’s also facing a lawsuit from several state attorneys general who are arguing that the merger could reduce competition and raise prices for consumers.

Source: Bloomberg

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  • Eric A

    As close as the last six months.

  • Acdc1a

    All of the Sprint prepaid brands plus spectrum. Not sure how this is a great deal.

  • randian

    It’s also facing a lawsuit from several state attorneys general who are arguing that the merger could reduce competition and raise prices for consumers

    Where were they when Verizon and AT&T were busy buying up as many regional carriers as they could get their hands on?

    • ugp5

      They dropped the ball on Verizon and AT&T. Feds should have required ILECs to upgrade to GPON at ALL POTS locations as a condition of these mergers.

      However, two wrongs don’t make a right.

      • (J²)

        “Two wrongs don’t make a right” while true, that is unfortunately not so in this case. The only way to fix the inbalance is by allowing this merger to proceed ensuring Verizon and AT&T (who have proven they are content working together as number one and two, respectively) have competition for decades to come.

        • ugp5

          The imbalance is the lack of fiber deployment, this merger will not fix that.

  • none

    Really DOJ?
    The whole reason the merger is desirable is because of their combined spectrum holdings.

    The DOJ must be deep in Verizon’s pockets. Even if Sprint+T-Mobile merged with no concessions, the combined New T-Mobile would still be smaller than Verizon.
    Larger than AT&T but smaller than Verizon.

    • George B

      Besides Sprint’s huge spectrum holdings at 2.5 GHz, Sprint and T-Mobile both have some licenses for narrow chunks of spectrum that aren’t that valuable by themselves plus Sprint’s already build 4G network is more valuable to Dish than it is to T-Mobile who already has it’s own network. Combine the narrow leftover chunks of spectrum with Dish licenses and Sprint’s network hardware and you have a small 4th carrier that’s big enough to help the deal get done, but too small to put much price pressure on New T-Mobile.

  • Kevin

    No spectrum divesting, no deal. Government should recover some of Sprint’s spectrum and Government should sell spectrum to Dish, so more money in the treasury.