If you're the least bit familiar with the background information of the long-delayed merger between T-Mobile and Sprint that was finally sealed on April 1, you probably already know a third company actually played a crucial role in getting the transaction across the finish line.
Of course, Dish's strategy to enter the market and quickly become a force to be reckoned with involves a number of moving parts, one of which was impossible to anticipate six, nine, or twelve months ago. Although it's getting clearer and clearer that the coronavirus pandemic will throw a monkey wrench into the company's lofty 5G rollout plans, Dish continues to refuse any and all communication on the matter.
For what it's worth, at least the folks over at Light Reading have managed to obtain confirmation the Boost Mobile acquisition is still in the cards. This is likely to close by the end of the current quarter (no later than June, that is), transferring more than 9 million prepaid customers from Sprint's subsidiary to new supervision by Dish Network.
A timid start and an uncertain future
While Dish will not instantly become a major wireless player as a result of the $1.4 billion transaction, this was merely supposed to be the beginning of an aggressive business integration and expansion strategy. Unfortunately, Boost is widely seen as a dying brand, and its ever-shrinking subscriber numbers might prove difficult to, well, boost in the short run due to the many financial difficulties caused by COVID-19.
Interestingly, industry analysts don't expect the two companies to revisit the negotiation table at the eleventh hour, even though Dish could argue Boost Mobile's value has significantly eroded since July 2019. Meanwhile, it remains to be seen if Dish still aims to be "disruptive as far as wireless pricing goes" after taking over Boost's faltering business and becoming a T-Mobile MVNO (mobile virtual network operator), as promised last year.
More importantly, we're curious to see if the company will be able to meet the requirements set by the Department of Justice as part of a three-way deal signed last July. Under those terms, Dish committed to providing a 5G signal for 70 percent of the US population by June 2023, which always seemed unlikely but now feels outright utopian.
Given the extraordinary circumstances realistically expected to lead to major delays in nationwide 5G deployments, Dish may well be granted an extension of that deadline by the DOJ or get to dodge the penalties initially agreed upon. That certainly seems fair given how hard it might prove for the company to secure essential financing in this very uncertain economic climate, but let's just hope Charlie Ergen will not end up abusing the leeway Dish is likely to receive from US government agencies like the FCC... yet again.
Adrian, a mobile technology enthusiast since the Nokia 3310 era, has been a dynamic presence in the tech journalism field, contributing to Android Authority, Digital Trends, and Pocketnow before joining PhoneArena in 2018. His expertise spans across various platforms, with a particular fondness for the diversity of the Android ecosystem. Despite the challenges of balancing full-time parenthood with his work, Adrian's passion for tech trends, running, and movies keeps him energized. His commitment to mid-range smartphones has led to an eclectic collection of devices, saved from personal bankruptcy by his preference for 'adequate' over 'overpriced'.
Recommended Stories
Loading Comments...
COMMENT
All comments need to comply with our
Community Guidelines
Phonearena comments rules
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: