Boost Mobile Deal Closed by DISH
Boost Mobile Deal Closed by DISH on July 1
For months, the technical press has been abuzz with speculation about the finalizing of Dish Network’s purchase of Boost Mobile. The satellite system
finally put this speculation to rest on June 17, stating in a filing before the
Securities and Exchange Commission that it will close the deal on July 1.
For months, the technical press has been abuzz with speculation about the finalizing of Dish Network’s buyout of Boost Mobile. The satellite system finally put this speculation to rest on June 17, stating in a filing for the Securities and Exchange Commission that it will close the deal on July 1.
Industry experts had been floating theories about the reasons for the long delay in putting the merger to bed. Some had been saying that DISH might be trying to renegotiate for a lower price because of market conditions affected by the Covid-19 outbreak. Others said the actual motive was ensuring that Boost customers could obtain handsets compatible with T-Mobile’s wireless network. Neither DISH nor Boost, though, said anything in public about the reasons.
To review: early this year, T-Mobile agreed to sell Boost Mobile to DISH. It did so partly to win DoJ and FCC approval for its own purchase of Sprint. DISH agreed to buy Boost for $1.4 billion and promised to buy 800 megahertz (MHz) of wireless spectrum from T-Mobile over three years.
T-Mobile, in return, said it would let DISH use parts of its wireless network for seven years. By the end of that period, DISH would presumably have its own wireless system in full operation.
Years of Preparation by DISH
Years ago, DISH acquired large blocks of wireless spectrum. The satellite system paid paid billions of dollars for them, but has been slow to build its network, and by FCC rules faces possible forfeiture of the spectrum if it fails to meet deadlines for doing so. The temporary lease of T-Mobile spectrum enables DISH to extend the deadline for a few years.
We should expect, therefore, that DISH will soon offer wireless services under its own name. We haven’t been given a firm date, though.
For all TV and internet services, shop with Bundle Deals. Compare all providers and plans, then order any service with just one phone call.