The Department Of Justice has approved the merger of T-Mobile and Sprint after the year of its procural. The agreement comes after two companies agreed to sell its satellite business assets to Dish Network Corp. to become the fourth-largest carrier in the country.
Following the deal, the two companies will be required to provide at least 20,000 cell sites and hundreds of retail locations to Dish Corp. While the agreement seeks to address concerns over the increase in the consumer prices that may leave the 95% cellphone customers with top 3 carriers of the U.S.
For now, T-Mobile will give its network access to Dish for seven years to build its own network. “With this merger and accompanying divestiture, we are expanding output significantly by ensuring that a large amount of currently unused or underused spectrum are made available to American consumers in the form of high-quality 5G networks,” Makan Delrahim, the assistant attorney general of the DOJ’s antitrust division, said.
The deal will give nine million Sprint prepaid cellphone customers and additional wireless spectrum to Dish, the satellite-TV provider. The union of the two companies will reduce their gap with the country’s leading carrier Verizon Inc. and AT&T. Ajit Pai, Chairman of Federal Communication who backed up the deal with the commitment to deploy the 5G network in the country said it will preserve competition and advance U.S. leadership in rolling out next-generation networks.
Over the years, the U.S. carrier company has been struggling to gain the customers as the rollout of unlimited plans have made the companies difficult to effortlessly grab the number position. In the latest agreement, the company has promised to not increase its price for three years and cover 97% of the U.S. population with 5G services
Last year, Dish TV generated $13.6 Billion in revenue with $13 billion of net debt before the deal. After the deal, Dish has not commented anything on the deal. The company has lost about ongoing carriage dispute with HBO.