Following the latest news of T-Mobile and Sprint’s merger milestone hurdle, Dish Network has officially confirmed that it will become a major US carrier.
As part of the T-Mobile/Sprint merger, the US Department of Justice reached an agreement with the two parties if Dish is well equipped to run Sprint’s Prepaid businesses and roll out its own national network.
Dish has committed to the FCC that it will roll out a nationwide 5G network that covers 70% of the United States by 2023. As part of the merger, Dish will acquire Sprint’s prepaid businesses including Boost Mobile, Sprint prepaid, and Virgin Mobile. It will acquire 14MHz of Sprint’s 800MHz spectrum, and it will be given access to the New T-Mobile’s network for seven years while it builds its customer base and deploys its 5G network.
These developments are the fulfillment of more than two decades’ worth of work and more than $21 billion in spectrum investments intended to transform DISH into a connectivity company 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 Cofounder and Chairman Charlie Ergen
Assets that Dish will acquire from Sprint are valued at $5 billion and include a $1.4 billion payment for Sprint’s prepaid businesses, and a $3.6 billion agreement to purchase a slice of Sprint’s 800 MHz spectrum. The spectrum transaction will be completed three years after the closing of the acquisition of Boost, Virgin, and Sprint prepaid.
Dish is in a very interesting position. Although the merger is still subject to conditions and not yet 100% closed (but very near), Dish will have the opportunity to build a base of subscribers by using Sprint and T-Mobile’s existing network while it builds its own independent 5G network. Theoretically, Dish could build a customer base over the next seven years and when it comes time, it can wean its customers off and onto its 5G-only network.
Seeing as Dish is also new to the 5G business, it will also be able to build a customer base for home 5G broadband internet. Personally, I hope Dish can disrupt the monopolized cable-internet business in the US. It would really be nice to have options outside of one or two providers in a given area and it could give cable companies a reason to treat its customers better.