The Sprint/T-Mobile merger has been put on hold while the concerns and details get squashed out, and it looks like another roadblock has been taken down.
Originally, the Justice Department had issues with how many carriers the new mega-carrier would own; to resolve this, Sprint or T-Mobile would have to sell something off. Early rumors suggested that Boost Mobile (currently owned by Sprint) would be the carrier to be spun off, and there were a ton of potential suitors for the prepaid service.
It looks like Dish won out, though. Google was another name in the race, but we've heard rumors about Google buying into the wireless network game for a very long time, and so far nothing beyond their MNVO Google Fi service has materialized.
But Dish, the satellite company that also owns and manages Sling TV, is ready to drop $5 billion on wireless assets from Sprint. This deal includes paying $1.5 billion for Boost Mobile and $3.5 billion for wireless spectrum, which puts Dish in a position to start competing pretty quickly. Dish will also be required to hold on to these assets for at least three years, and they'll also have a guaranteed seven-year wholesale agreement to sell T-Mobile wireless service as an MNVO, with T-Mobile helping out in operational support.
So this hurdle is out of the way, and the Justice Department will supposedly sign off on the merger this week. That still leaves some states around the US to try and block things from finalizing, but this was a big step in getting things finished for Sprint and T-Mobile.
source: Bloomberg
