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T-Mobile-Sprint Merger Looks To Go Forward Thanks To Dish Network Deal

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A merger deal between two major mobile carrier companies looks to go through, thanks to a deal which will satisfy the Department of Justice's antitrust concerns. Urge To Merge T-Mobile and Sprint have been wanting to merge for more than a year, but the Justice Department had some issues. Antitrust chief Makan Delrahim didn't like the fact that the merger would reduce the number of major players in the wireless industry from four to three, thus lessening competition. So the Department put its foot down that there has to be four national mobile-service companies on the market. Let’s Make A Deal To assuage the antitrust chief’s concerns, T-Mobile and Sprint agreed to work out a deal with Dish Network, which will allow the cable provider to purchase their prepaid businesses, including Boost Mobile, for $1.5 billion and spectrum assets for another $3.5 billion. As a result, Dish has a seven-year agreement to sell T-Mobile wireless service under the Dish brands, and T-Mobile will provide operational support as prepaid customers shift over to Dish. In essence, this will mean that Dish will be come the fourth mobile career, filling the void left by Sprint. Now that the deal has been reached, the Justice Department is expected to approve the $26.5 billion merger. Dish It Out The deal is a sign that T-Mobile and Spring realize they have to play ball with the Justice Department, but there is a limit to how competitive they’re willing to let the marketplace get. As part of the agreement, Dish cannot sell its wireless business or any of its newly acquired assets to a third party for at least three years, thus blocking Google or Amazon from becoming an even greater competitor. -Michael Tedder Photo: Mike Blake / REUTERS

A merger deal between two major mobile carrier companies looks to go through, thanks to a deal which will satisfy the Department of Justice's antitrust concerns. Urge To Merge T-Mobile and Sprint have been wanting to merge for more than a year, but the Justice Department had some issues. Antitrust chief Makan Delrahim didn't like the fact that the merger would reduce the number of major players in the wireless industry from four to three, thus lessening competition. So the Department put its foot down that there has to be four national mobile-service companies on the market. Let’s Make A Deal To assuage the antitrust chief’s concerns, T-Mobile and Sprint agreed to work out a deal with Dish Network, which will allow the cable provider to purchase their prepaid businesses, including Boost Mobile, for $1.5 billion and spectrum assets for another $3.5 billion. As a result, Dish has a seven-year agreement to sell T-Mobile wireless service under the Dish brands, and T-Mobile will provide operational support as prepaid customers shift over to Dish. In essence, this will mean that Dish will be come the fourth mobile career, filling the void left by Sprint. Now that the deal has been reached, the Justice Department is expected to approve the $26.5 billion merger. Dish It Out The deal is a sign that T-Mobile and Spring realize they have to play ball with the Justice Department, but there is a limit to how competitive they’re willing to let the marketplace get. As part of the agreement, Dish cannot sell its wireless business or any of its newly acquired assets to a third party for at least three years, thus blocking Google or Amazon from becoming an even greater competitor. -Michael Tedder Photo: Mike Blake / REUTERS