Dish Network Corp. Talks "to buy assets that T-Mobile and Sprint want to sell to have their horrible merger approved by the antitrust authorities, Bloomberg reported on Tuesday.
Sources familiar with the discussions told Bloomberg that Dish could announce a deal "assets including radio spectrum and Sprint's Boost Mobile brand" are expected to be purchased later this week. This deal is part of a package to convince the Department of Justice that there would be "at least four viable wireless players" if T-Mobile's $ 26.5 billion takeover offer for T-Mobile was approved by AT & T
Last month, Federal Communications Commission head Ajit Pai said he would recommend approval of the merger of T-Mobile and Sprint on the basis of vague promises to accelerate the deployment of 5G. However, it soon became known that the DOJ staff were "skeptical" about the merger for a long time and that the agency's cartel department was pushing for the merger to end – based on the almost certain assumption that a downgrade from four to three major ones national airlines would harm competition and increase prices to the detriment of consumers. It was reported last week that Attorney Generals in at least 10 states are planning to file a separate lawsuit to block the deal.
That could only leave T-Mobile and Sprint a narrow path to closing the deal. In addition to the merged entity's commitment to sell Boost Mobile, drive the expansion of 5G infrastructure in rural areas, and not raise prices for three years, the DOJ's approval requirement could also entail splitting off enough assets to make it profitable Infrastructure to create fourth national candidate. According to Bloomberg, Dish is one of the DOJ's preferred candidates.
However, as Bloomberg's Tara Lachapelle noted separately, these terms T-Mobile and Sprint could take a back seat. Lachapelle said on Tuesday that Dish does not have a wireless network and "the takeover of Boost Dish's prepaid customers does not seem to offer much in the wireless sector," but the company is already known as "Hoarder." of middle band frequency licenses. Lachapelle argued that if the combined company divests $ 6 billion in assets to Dish, it could do anything to work with a potentially dangerous upstart like Amazon:
What Dish needs is a partner with the ability to help build his network. If the Sprint Deal fails, you could call T-Mobile as a partner. (After all, Dish was, at least until now, one of the biggest opponents of the merger of T-Mobile and Sprint.) Or what about Amazon?
A few years ago, Ergen is said to have talked about a kind of partnership with Amazon.com Inc. – and that must make T-Mobile a little nervous. It is hard to see that the purchase of Sprint and the potential provision of an entry point for Amazon for T-Mobile is a better result than the status quo in competition with Sprint, a much weaker rival.
Yikes! (It was also rumored that Comcast would be eligible for such a partnership, but denied having plans to purchase the assets last month.)
According to Bloomberg, no deal is secure and talks may fail. While Sprint is reportedly desperate to seal the deal, T-Mobile may be more afraid to move forward in these circumstances. As Lachapelle noted, creating such a dilemma for T-Mobile may have been the intention of the DOJ when it began to implement the divestment legislation.