T-Mobile and Sprint promise a combined network that'll deliver better service at lower prices. In addition to promises of a 5G rollout, T-Mobile also agreed to divest Boost Mobile, but it'll keep T-Mobile's prepaid brand, Metro.
T-Mobile has also promised to offer a broadband alternative to rural customers and has guaranteed that 90% of Americans will see mobile broadband service at speeds of at least 100Mbps if the deal is approved. For rural Americans, the coverage would be 85% within three years, and 90% within six. For instance, within three years the company will provide 5G service to 97% of the US population, and within six years 99%. Specifically, as part of the FCC's deal, the new T-Mobile would meet several 5G network coverage benchmarks. It included build-out requirements to ensure 5G deployment in rural communities, a promise to offer wireless home broadband that could substitute for a wireline, and the divestiture of Boost Mobile. In May 2019, T-Mobile negotiated a deal with the FCC that promised 5G coverage to nearly all of the US. What has T-Mobile promised the FCC it will do? Though T-Mobile CEO John Legere has called Dish a "credible competitor," many critics have doubts about Dish's commitment given its past reluctance to build out its network. "Taken together, these opportunities will set the stage for our entry as the nation's fourth facilities-based wireless competitor and accelerate our work to launch the country's first standalone 5G broadband network," Dish CEO Charlie Ergen said in a statement. Dish already has spectrum holdings in the 600MHz and 700MHz bands, as well as some midband holdings that'll allow for greater speeds, though it doesn't have the same amount of range. Under the deal, Dish will pay $1.4 billion for the prepaid businesses and $3.6 billion for the 800MHz spectrum, which is coveted because it has great range and can go through walls, even if it can't carry super-high speeds. Though it's unclear what the service will look like beyond utilizing Sprint's prepaid business and retail stores. Purchasing the divested prepaid businesses, getting additional airwaves and adding the ability to begin offering service on the T-Mobile network while it builds its own would make it easier and more cost-effective for Dish to finally become a wireless competitor. The whole purpose of this agreement is to create another nationwide carrier that could compete with the new T-Mobile, as well as with AT&T and Verizon. The deal also gives Dish access to T-Mobile's network for seven years while Dish builds its own 5G offering. To get the Justice Department to sign off on the merger, Dish agreed to buy Sprint's prepaid brand Boost and acquire some wireless spectrum.
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What's the deal with satellite TV provider Dish? 11 District Court decision helped clear the path to allow the companies to complete the merger. This court battle was a major hurdle standing in the way of the merger. The deal won the backing of the FCC and the Justice Department last year, but attorneys general from 14 states and the District of Columbia, led by New York Attorney General Letitia James and California Attorney General Xavier Becerra, banded together in a multistate lawsuit to stop it, arguing the merger would "deprive consumers of the benefits of competition and drive up prices for cell phone services." What 5G phones are available now Why has the merger dragged on? T-Mobile CEO John Legere has stepped down from his role, and Mike Sievert, the company's COO, has moved into the CEO chair to run day-to-day operations of the merged company.
What's next? The new company is retaining the T-Mobile name. As part of all the wrangling, Dish Network will become the fourth national carrier, giving consumers a new alternative.
They've also said they'll lock in consumer prices for at least three years. T-Mobile and Sprint's combined assets could jump-start their 5G ambitions, pushing the industry further into the next-generation technology. Now that the deal is finally closing, it could bring about a seismic shift in the mobile world. The attorneys general decided against appealing the District Court decision, so here we are. The merger comes less than two months after a US District Court gave the green light to the deal in a ruling that went against 14 state attorneys general who opposed the transaction. After nearly two years of waiting to close their $26.5 billion merger, T-Mobile and Sprint have crossed the finish line and completed its quest to combine the third- and fourth-largest national wireless carriers.
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