Now that Drew's chairman Charles Ergen has finally reached his dream of buying a wireless provider, let's take a look at the deal with T-Mobile and Sprint, which he just announced. First of all, we know that the deal has been made so that the US Department of Justice gives its blessing to the $ 26.5 billion merger between third and fourth largest carriers in the country. The role of the Ministry of Justice in any type of merger and acquisition transaction is to make sure that the competitive environment is not impaired by the proposed transaction. In this particular case, the agency wanted T-Mobile and Sprint to help create a new national carrier to replace Sprint.
In order to create what Dish calls a "fourth nationwide network-based competitor based on facilities," after the T-Mobile-Sprint merger actually closes (which may not be the case until December), Dish will buy prepaid Sprint and including Boost Mobile, Virgin Mobile and Sprint's own prepaid business. Three years after the end of the acquisition of the prepaid business, Dish will buy 1
4MHz at 800MHz Sprint Spectrum. As already announced, it will also sign a seven-year MVNO deal with T-Mobile that will allow Dish to sell cellular service to consumers under its own name while building its own 5G network; Dish will eventually transfer its customers from the T-Mobile network to its own 5G network after it is completed. The value of prepaid purchases is $ 1.4 billion, and the spectrum purchased by the satellite content provider is estimated at $ 3.6 billion. Dish must have its 5G network covering 70% of the country by June 14, 2023.
Pre-paid enterprises acquired by Dish have 9.3 million customers in all 50 countries and Puerto Rico. All of these customers will become Dish customers when the transaction is closed, including those using the legacy Sprint network. In addition, 400 employees and over 7,500 stores will move to Dish.
"This development is the implementation of more than two decades of work and more than $ 21 billion in spectrum investments designed to transform DISH into a connectivity company. Taken together, these opportunities will lay the foundation for our entry as the fourth nationwide wireless competitor base and accelerate our work on launching the country's first 5G broadband network … FCC and DOJ must be credited for building an innovative 5G wireless ecosystem, which will introduce new opportunities for US consumers and business, while enhancing competition in the wireless industry. "- Charles Ergen, Co-Founder and Chairman, Dish Network
The 800MHz spectrum that Sprint buys will ultimately be added to the existing Dish inventory for the low-frequency 600MHz and 700MHz spectrum. The company is the second-largest winner of the FCI auction for 2017 with 600MHz air, spending $ 6.2 billion compared to $ 8 billion that T-Mobile discards. The low-frequency spectrum moves further and penetrates better in the high-frequency spectrum buildings. The company says its 600MHz and 700MHz ethernet waves are perfectly suited to the midrange AWS-4 and AWS H Block midrange frequencies. While these frequency bands may not travel to low-frequency diversity, they offer greater data capacity. Dish will negotiate a deal to lease part of its 600MHz spectrum to T-Mobile while it will receive the first Dibs in some towers, network equipment and retail assets that will be closed due to the merger. Sprint-Dish's prepaid business has to cover 70% of the country with 5G by June 2023 or pay $ 2.2 billion "data-id =" 347952 "/>
As part of the deal, Dish should have its 5G network running and covers 70% of the US population by June 14, 2023. If the deadline is not the company will make a "voluntary contribution" to the US Treasury of $ 2.2 billion.
The FCC and DOJ have approved the merger of T-Mobile-Sprint, all that remains is the order to block the merger. The claimants, 13 state attorneys and Washington DC's Advocate General DK may agree to an agreement. If this is not the case, the process may begin at the latest in December. In other words, do not expect the merger to end immediately.