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Reports Suggest T-Mobile and Sprint Could Sell Prepaid Business to Support Merger Approval

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Last month, there were reports that staff from the US Department of Justice (DOJ) informed T-Mobile and Sprint of their slim chances of having their proposed merger approved. The reasoning behind this was because of the way it is structured.

A new report, however, shows that the two may be making some important decisions on how they can gain the approval of the government agency.

According to Bloomberg, there are reports that one of the options being considered is to separate and sell their prepaid businesses. There is also another option of selling some spectrum licenses. A fourth carrier could also be put up as another option in order to provide a network-leasing agreement. Unfortunately, these two options are less attractive for the companies involved.

Combining Boost Mobile, Virgin Mobile, and Metro by T-Mobile gives T-Mobile a big part of the prepaid market at 42%. By selling these prepaid ventures, there is a high chance that the proposed merger could be approved. This option is also being considered, especially since there is a concern on how the deal could affect the low income consumers.

This report follows the suggestion of Boost Mobile founder, Peter Adderton, who suggested that Boost and/or Metro by T-Mobile be spun off if the deal is approved. The suggestion was made last year, at the time the proposed merger was announced.


Source: Bloomberg 


8 comments:

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  1. That means Boost, Virgin, Metro, are going away if they sell? That is going to cause those customers to flee.

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    1. No, it means that New T-Mobile team might offer to sell Boost and/or Virgin Mobile to a third party company in order to get the merger approved. That company would operate as a MVNO of New T-Mobile.
      T-Mobile is not going to offer to sell Metro by T-Mobile. It is too successful and integral to the T-Mobile brand now.

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    2. Article in Fierce Wireless today says New T-Mobile promised to sell Boost if the merger is approved. They also promised not to raise prices; to build out 5G in 85% of rural areas within three years of closing the merger, and 90% within 6 years.

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    3. RCR Wireless has a much more detailed description of the promises New T-Mobile made in the even the merger is approved. This description is different than the ones Fierce reported based on a Bloomberg article.

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  2. No reason prepaid should be more than $30 monthly, and list the taxes and fees, Democrats always look for a way to make a bargain not be a bargain, and more promotions for loyal customers already, no one wants an outdated phone because they can't afford a high priced brick on arrival

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    1. But what is an outdated phone? I still use a iPhone SE, Moto E4, & Pixel. I don’t consider them outdated. And I can’t afford even a $400 phone like the Pixel 3A! Why don’t they focus on making reliable and affordable phones instead! In an ideal economy a good smartphone shouldn’t cost more than $200. Period end of story. Apple, Google & Samsung have saturated the planet and thus backed themselves into a corner! Real innovation should lower costs in the long-run not raise them.

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    2. How do you define outdated?

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  3. Boost Mobile founder awaits further details on T-Mobile/Sprint deal -https://www.fiercewireless.com/wireless/boost-mobile-founder-awaits-further-details-t-mobile-sprint-deal

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