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Home / Business / Dish must cover 70% of the country with 5G by June 2023 or pay $ 2.2 billion

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



After Dish Chairman Charles Ergen finally realized his dream of buying a mobile operator, let's take a look at the transaction with T-Mobile and Sprint, which was announced yesterday. First, we know that the agreement has been reached for the US Department of Justice (DOJ) to bless the $ 26.5 billion union of the country's third and fourth largest airlines. For every type of M & A transaction, the DOJ must ensure that the competitive landscape is not disrupted by a planned transaction. In this particular case, the agency wanted T-Mobile and Sprint to help create a new national carrier that replaces Sprint.
To create what Dish calls the "fourth nationwide device-based network competitor" after the T-Mobile sprint The merger is actually completed (possibly not until December). Dish acquires Sprint's prepaid business and buys clients including Boost Mobile, Virgin Mobile and Sprint's own prepaid business. Dish will buy 1
4MHz of Sprint's 800MHz spectrum three years after completing its prepaid business. As previously reported, the company will enter into a seven-year MVNO agreement with T-Mobile, which enables Dish to sell mobile services under its own name to consumers while building its own 5G network. Finally Dish will switch its customers on completion of the T-Mobile network on its own 5G network. The value of prepaid purchases is $ 1.4 billion, while the range purchased from the satellite content provider is $ 3.6 billion.

Dish must have its 5G network, which covers 70% of the country until June 14, 2023.

Dish's prepaid businesses have 9.3 million customers in all 50 states and in Puerto Rico. All of these customers become Dish customers when the transaction is complete, including customers using the old Sprint network. In addition, 400 employees and more than 7,500 stores will relocate to Dish.

The 800 MHz spectrum it acquires from Sprint eventually becomes Dishes's existing inventory Low-band devices with 600 MHz and 700 MHz added Spe ktrum. The company was the second largest winner of the 2017 FCC Auction for 600 MHz radio waves and spent $ 6.2 billion, compared to $ 8 billion spent by T-Mobile. The low frequency spectrum continues to move and permeates buildings better than the high frequency spectrum. The company claims its 600MHz and 700MHz radio waves are a perfect match for its midrange spectrum of AWS-4 and AWS H block. While these midband radio waves may not reach the lowest bandwidth, they offer more data capacity. Dish will negotiate a contract to lease part of its 600 MHz spectrum to T-Mobile, while T-Mobile will see its first losses on certain towers, network devices and retail goods as a result of the merger.

As part of the business, Dish has to make a "voluntary contribution" to the US Treasury of $ 2.2 billion if the deadline is not met.

Now that the FCC and the DOJ have approved the merger of T-Mobile Sprint. All that remains is to order a lawsuit filed to block the merger. The plaintiffs, 13 Attorney General and Attorney General of Washington D.C., can agree to an agreement. Otherwise, the process could start in December. So do not expect the merger to be completed immediately.


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