Wednesday, June 22, 2022

DISH and T-Mobile Expand Network Partnership Pending DOJ Approval

Pending approval by the Department of Justice, DISH Network (NASDAQ:DISH) and T-Mobile (NASDAQ:TMUS) have signed an amendment to the 2020 Master Network Services Agreement (MNSA) that provides customers of DISH's retail wireless brands, including Boost Mobile, access to T-Mobile's nationwide 5G network. 

The agreement stipulates that T-Mobile will help DISH in migrating DISH's 3G CDMA customers to 5G handsets. In turn, DISH will pay T-Mobile "not less" than a total of $3.3 billion through January 21, 2027.  The Term Sheet will not be effective unless it receives DOJ approval by August 14, 2022.

Analyst Jonathan Chaplin of New Street Research said, “If approved, we believe the deal will increase EBITDA and FCF at Boost materially. This should in turn improve access to capital, helping alleviate the most significant issue weighing on the equity. We see no reason why the deal won’t be approved.” Continue Reading

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