US satellite TV giant DISH Network has agreed to pay USD5 billion for assorted wireless assets in a deal with T-Mobile US and Sprint, people familiar with the matter have informed Bloomberg. The deal – which has been designed to preserve the existing four-player market structure – effectively paves the way for the Department of Justice (DoJ) to approve the long-running USD26 billion merger between T-Mobile and Sprint.
After weeks of negotiations, the parties have reportedly sealed an agreement which will see DISH pay USD1.5 billion for pre-paid mobile businesses and roughly USD3.5 billion for spectrum. The source told the news agency that DISH is prohibited from selling the assets or handing over control of the agreement to a third-party for a period of three years.
Further, DISH has been granted a seven-year wholesale agreement allowing it to launch an MVNO under the DISH brand. The package also includes a three-year service agreement from T-Mobile to provide operational support as pre-paid customers shift across to DISH’s future network.