Monday, July 29, 2019

DOJ OKs T-Mobile-Sprint; Requires Divestiture Package

The Department of Justice said Friday it and the Attorneys General for five states reached a settlement with T-Mobile and Sprint concerning their proposed $26B merger. The settlement requires what the DOJ characterized as a “substantial” divestiture package in order to enable a viable facilities-based competitor to enter the market.

Under the terms of the proposed settlement, T-Mobile and Sprint must divest prepaid business, including Boost Mobile, Virgin Mobile and Sprint prepaid, to Dish Network. The proposed deal also calls for the divestiture of certain spectrum assets to Dish. Dish will pay T-Mobile approximately $5 billion for the assets it is acquiring: $1.4 billion for the prepaid businesses and $3.6 billion for the spectrum.  

In addition, T-Mobile and Sprint must make at least 20,000 cell sites available to Dish and hundreds of retail locations, according to the DOJ. T-Mobile must also provide Dish with what it calls “robust access” to its network for seven years while Dish builds its own 5G network. Continue Reading

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