Dish Has Agreed To Buy Boost Mobile

Dish has reportedly struck a deal with T-Mobile, to divest some of its spectrum and Boost Mobile to the satellite provider Dish, in order for the Justice Department to approve of its merger with Sprint.

The Justice Department needs to sign off on this deal, before it can be approved and before the merger with Sprint can be approved. This report comes out of CNBC, who has a pretty good track record with telecommunications reports. 

The Justice Department still needs to decide on whether Dish would represent meaningful competition to T-Mobile, Verizon, and AT&T following the $26 billion merger between T-Mobile and Sprint.

Dish already has spectrum from different spectrum auctions over the past decade. If there is a company that could become a meaningful competitor to the existing wireless carriers, Dish would be the one in mind. T-Mobile and Sprint have already agreed to sell Boost Mobile to get this deal done, and the DOJ also wants it to sell some of its own spectrum.

T-Mobile wants to limit Dish's spectrum capacity to around 12.5 percent. Meanwhile, Deutsche Telekom wants to limit any strategic Dish investor to 5 percent.

This to make sure that T-Mobile and Deutsche Telekom aren't spending $26 billion to be left in the same spot they are in now. In distant third place behind the top two US carriers. The whole reason for the two to merge was to be able to better compete with top carriers, both of which are nearly three times the size of T-Mobile now. The combined T-Mobile and Sprint, would still be smaller than the top US carriers.

The Justice Department has a few things that it wants done before it can approve this merger between T-Mobile and Sprint. One major caveat is to make a fourth, viable, wireless carrier. Which would be the point of selling spectrum to Dish as well as selling Boost Mobile. 

Dish being the perfect buyer, giving it has spectrum that it needs to start deploying, before the FCC starts fining Dish and has been wanting to get into the wireless industry for many years.


Source: CNBC

Sprint, T-Mobile Rumored To Be In Final Stages Of Merger Deal... Yet Again

SoftBank which controls 80% of Sprint is expressing optimism about the prospect for mergers in the U.S. wireless carrier industry under President Trump.

The Obama administration was "quite tough on business," SoftBank CEO Masayoshi Son has been quoted saying. But now the "door is open" for potential deals he added.

Masayoshi Son failed in an attempt to merge Sprint with T-Mobile back in 2014 after the plan ran into regulatory hurdles. SoftBank paid $20.1 billion October 14th 2012 taking 70% control, on August 6th 2013 Softbank purchased another 2% raising their stakes to 80% ownership of Sprint and has struggled to turn the U.S. carrier around since.

Now, Masayoshi Son is ready to try again saying that while he is open to other options, T-Mobile remains his "first priority" for a merger with Sprint. T-Mobile CEO John Legere said earlier this year that the company was open to "various forms of consolidation."


Source: The Phone Ninja

Sprint, T-Mobile Rumored To Be Discussing Merger Details... Again

SoftBank which controls 80% of Sprint is expressing optimism about the prospect for mergers in the U.S. wireless carrier industry under President Trump.

The Obama administration was "quite tough on business," SoftBank CEO Masayoshi Son said Wednesday. But now the "door is open" for potential deals he added.

Masayoshi Son failed in an attempt to merge Sprint with T-Mobile back in 2014 after the plan ran into regulatory hurdles. SoftBank paid $20.1 billion October 14th 2012 taking 70% control, on August 6th 2013 Softbank purchased another 2% raising their stakes to 80% ownership of Sprint and has struggled to turn the U.S. carrier around since.

Now, Masayoshi Son is ready to try again saying that while he is open to other options, T-Mobile remains his "first priority" for a merger with Sprint. T-Mobile CEO John Legere said earlier this year that the company was open to "various forms of consolidation."


Source: CNN Money

Iliad Bails On T-Mobile Acquisition Attempt

Iliad today said it will no longer pursue an acquisition of T-Mobile U.S. The company first proposed to acquire 56% of the company back in July, but T-Mobile's majority owner Deutsche Telekom rejected the bid. 

Iliad later put together more resources with the help of financiers and proposed to acquire 67% of the company for $36 per share. Iliad arrived at today's decision "following exchanges with Deutsche Telekom and selected board members of T-Mobile US who have refused to entertain its new offer." Deutsche Telekom has long sought to rid itself of T-Mobile, but has yet to successfully sell the company. Iliad believed acquiring T-Mobile would have helped the combined entities realize $2 billion in annual cost savings, as well as given Iliad a toehold in the U.S. market.