T-Mobile announced it has completed the divestiture of Sprint’s prepaid wireless business, Boost Mobile, to DISH Network Corp.
The divestiture fulfills a commitment that T-Mobile and Sprint made to the U.S. Department of Justice and to the Federal Communications Commission as part of their merger process.
The FCC conditioned its 2019 approval of T-Mobile’s acquisition of Sprint on T-Mobile divesting Boost Mobile, a prepaid mobile service subsidiary, so that price-sensitive customers in densely populated areas would not be harmed by the merger.
The divestiture of Sprint’s prepaid business represents more than 9.3 million customers. T-Mobile will receive approximately $1.4 billion for Sprint’s prepaid business subject to a customary post-closing working capital adjustment.
Following the announcement, FCC Chair Ajit Pai said the action “is a key step toward promoting vigorous competition in the wireless marketplace, particularly for price-conscious consumers in our nation’s cities.”
“I also welcome DISH’s entry into the mobile industry. With this divestiture and its existing spectrum resources, DISH has the potential to make a big impact on a wireless marketplace that is transitioning to 5G, the next generation of wireless connectivity,” he said.
“Of course, while this divestiture is good news, the Commission remains committed to ensuring that T-Mobile and DISH comply in the coming months and years with all of the conditions imposed by the FCC in this proceeding,” Pai said.