Another obstacle to the T-Mobile and Sprint merger appears to have been cleared, as reports indicate a “rough agreement” has been reached with the Department of Justice (DoJ).
Securing DoJ approval was widely seen as one of the merger’s most difficult challenges, but sources now suggest that a settlement could allow the merger to proceed under specific conditions designed to preserve competition.
According to CNBC, the DoJ’s provisional deal would allow the merger to move forward if T-Mobile and Sprint sell Boost Mobile and some associated spectrum to Dish Network, positioning Boost as a fourth nationwide wireless competitor to replace the lost rivalry between T-Mobile and Sprint.
The sale of Boost Mobile and the spectrum is expected to be worth about $6 billion. Regulators believe this divestiture, together with other required commitments, would help keep consumer prices competitive by maintaining an additional national carrier on the market.
One key point of negotiation concerns access to T-Mobile’s network under a mobile virtual network operator (MVNO) agreement. The DoJ wants Dish to receive wide access, while T-Mobile has proposed a significantly smaller access share—roughly 12.5 percent. The parties are negotiating terms that would allow Dish substantial network use early on, enabling it to serve customers immediately while it builds its own infrastructure.
The tentative agreement would include an MVNO term of roughly six to seven years. After that period concludes, Dish would be expected to rely primarily on its own 5G network, creating a strong incentive for Dish to invest aggressively in network buildout and develop a long-term competitive alternative.
T-Mobile has already accepted several conditions to secure regulatory approval from the Federal Communications Commission (FCC). Those concessions include a three-year price freeze and a commitment to expand 5G coverage to 97 percent of the U.S. population within the same timeframe.
Another proposed clause would limit any single strategic investor in Boost Mobile to a maximum five percent stake. T-Mobile favors this restriction to reduce the chance that a large technology firm—such as Google or Amazon—might take a significant interest in Boost, potentially positioning itself to compete directly with the combined T-Mobile and Sprint business.
Even if a formal agreement with the DoJ is signed, the merger still faces additional hurdles. Approval is required from the California Public Utilities Commission, and a lawsuit brought by 14 state attorneys general remains pending. These outstanding reviews and legal challenges mean the transaction is not yet final.
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