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T-Mobile & Dish Expected to Close Boost Mobile Deal by July 1st

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When the proposed merger between T-Mobile and Sprint was being pitched, the U.S. government worried about how it would increase competitor pricing in the absence of a fourth brand. 

A solution that the two parties came up with was to sell Sprint's prepaid business, Boost Mobile. Dish Network was slated to acquire the business for $1.4 billion and the merger was closed. Months after that, however, many can't help but wonder why the deal has not yet been finalized.

Analysts shared that the Boost deal had been expected to close since June 1st. But it's been a few days and there seems to be no word yet. And now it looks like the companies are facing a new deadline on July 1st. Both the Department of Justice (DoJ) and T-Mobile has noted this deadline on when the Boost Mobile-Dish Network deal will be closed. This marks 90 days since the consent decree was filed in April 1. 

According to analysts from LightShed Partners: 

"If T-Mobile is not delivering certain technical capabilities under the transition services agreement, the DoJ has the ability to compel them to do so. If Charlie Ergen is stalling or negotiating in bad faith, it also has the ability to compel Dish to close."


Dish has not commented on the status of its Boost deal. But a spokesperson for the company says that they still have time until the July 1 deadline. On its Q1 conference call held in May, Dish co-founder and chairman Charlie Ergen shared that they still had certain things to happen before the deal closes. One of those is the issue of cross provisioning. When the prepaid brand is owned by Dish, it will need to provision both new and existing customers on T-Mobile's network instead of the Sprint network that Boost has since been using. Ergen shares that:

"We don't necessarily want to go back and we don't want to necessarily put people on the Sprint network, and then have to go back and switch them later, and the cost of switching later to T-Mobile network."

The executive shared that whenever customers are switched, carriers experience excess churn. The condition for this has not yet been met. They are hoping this issue will be addressed by July 1st. 

In addition to meeting this condition, Dish and T-Mobile have not yet agreed on the terms of the 600 MHz spectrum lease that the DoJ imposed as a requirement for the merger. Analysts believe that T-Mobile should ask the government agency for a 3-year lease of all 600 MHz spectrum owned by Dish at a rate no less than $350 million per year. The analysts even noted that the Un-carrier network recently signed a similar lease deal with Columbia Capital. The DoJ can use this as a framework for its lease deal with Dish. 

Hopefully, the lease terms will be announced along with the closing of the Boost deal. 


Source: Fierce Wireless 

3 comments:

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  1. Is this saying that before the deal with Dish acquiring Boost Mobile that ALL Boost customer will need to be transitioned over to T-Mobile's GSM technology from legacy Sprint's CDMA technology?

    Let's see...it's June 10, 2020. How is T-Mobile going to move all of the affected Boost Mobile customers over to GSM by July 1st? Are they sending out free comparable or better handsets to the Boost Mobile customers that will work on GSM so ol'Charlie wont have to mess around with the legacy Sprint CDMA technology and equipment when he closes on the Boost Mobile purchase?

    Unless I'm reading this wrong - I just don't see how T-Mobile is going to transition all of the 1.4 million Boost Mobile subscribers over to GSM by July 1st - there just isn't enough time.

    As of today on the Boost Mobile website, Boost is still selling CDMA devices and service plans. What happens to those using Boost with an Airave device? Does that just cease to exist on June 30, 2020?

    This sounds like a crisis that not many are reporting on - and I'm sure Boost Mobile dealers are just as in the dark about the now hurried-up transition from CDMA to GSM by July 1, 2020 as anyone else is.

    This is quite alarming. Being in California, I'm certain the C.P.U.C. will step in and more or less tell Dish and T-Mobile to cease transitioning any California customers over to GSM until both Dish and T-Mobile appear before the C.P.U.C. and lay out the complete transition plan so that California customers are not left holding the bag with no service and no usable device.

    HELLS_BELLS

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    Replies
    1. Seriously doubt either T-Mobile or Dish will provide free "comparable or better" devices. Based on how these transfers were handled in the past, I believe Boost customers might be offered a basic android with B2,4,12 and maybe 71.

      Delete
  2. https://www.foxbusiness.com/media/t-mobile-might-be-forced-to-find-new-buyer-as-dish-network-plays-hardball

    ReplyDelete
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