Dish Network Corp. talks "about buying assets that T-Mobile and Sprint are planning to sell to approve their horrific merger with antitrust authorities, Bloomberg said on Tuesday
Sources familiar with the talks told Bloomberg that Dish could announced a deal to buy "assets including wireless spectrum and Sprint's Boost Mobile brand as soon as this week.This agreement is part of a package to convince the Justice Department that there will be" at least four viable wireless players " if it approves T-Mobile's $ 26.5 billion bid for T-Mobile Sprint, which will create a giant that will compete with industrial giants Verizon and last month, Federal Communications Commission chief Ajet Paj said he would recommend approving T-Mobile / Sprint's merger on the basis of vague promises that he would accelerated the deployment of 5G. Soon after, news came out that the Ministry of Defense officials have long been "skeptical" of the merger, and that the antitrust unit of the agency is pushing for a lawsuit to stop it – based on an almost sure belief that lowering from four to three major national carriers would harm competition and raise prices to the detriment of consumers. Only last week reports have appeared that lawyers in at least 10 countries are planning to file a separate case to block the deal.
This can leave T-Mobile and Sprint with just one narrow trail to take out the deal. In addition to the requirement of the merged company to agree to sell Boost Mobile, to engage in the construction of 5G infrastructure in rural areas and not to raise prices for three years, the terms of approval of the Ministry of Justice may include that it turn enough assets to create a viable fourth national contender. According to Bloomberg, one of DOJ's favorite candidates is Dish.
As Tara Lachapelle of Bloomberg notes separately, these conditions can end up with T-Mobile and Sprint at the back of the road. Lachapelle writes on Tuesday that Dish does not have a wireless network and "Boost's prepaid customers will also not give Dish much of the foot in the wireless space," but the company is now known as the "accumulation" of mid-range spectrum licenses . Lachapelle argues that if the merged company ultimately unloaded $ 6 billion in Dish, it could give him everything he needs to partner with a potentially dangerous beginner like Amazon:
What Dish needs, is a partner with an opportunity to help build its network. If the deal with Sprint collapses, T-Mobile can be said to be a partner. (After all, Dish is one of T-Mobile-Sprint's biggest opponents, so far it seems). Or how about Amazon?
Ergen discussed a partnership a few years ago with Amazon.com Inc. – and this should make T-Mobile a bit nervous. It is hard to see how Sprint's purchase and potential entry point entry for Amazon is a better result for T-Mobile than the status quo with Sprint, a far less competitive competitor.
Yikes! (It is said that Comcast is running for such a partnership, but denied that he had plans to buy assets last month.)
No deal is unsure and talks may fail, according to Bloomberg. While Sprint desperately wants to seal the deal, T-Mobile may be more concerned about moving ahead under these conditions. As Lachapelle notes, creating such a dilemma for T-Mobile may actually have been the intention of the Ministry of the Interior when it started shipping the sales requirements.