Amazon wants to buy Boost Mobile from T-Mobile and Sprint
Jun 01 2019
Meanwhile, regional carrier C Spire Wireless has come out in support of the T-Mobile-Sprint merger after previously opposing it.
T-Mobile and Sprint said earlier this month that the combined company would sell Sprint's pre-paid Boost Mobile unit as part of some conditions it agreed to in order to appease regulators. Only one day after the FCC (Federal Communications Commission) indicated that it would back the merger, staff in the DOJ's (US Department of Justice) antitrust division recommended that the agency block the merger, Reuters reported.
What makes this rather puzzling is that Boost Mobile is Sprint's MVNO, and it doesn't use any of T-Mobile's wireless spectrum.
Boost Mobile is now one of Sprint's prepaid offerings, but, in the grand scheme of the T-Mobile-Sprint merger, the acquisition would allow Amazon to utilize T-Mobile's network for at least six years, according to one such anonymous source. The companies have already pledged to sell Boost, now owned by Sprint, in order to reduce their market share in the prepaid wireless sector.
Amazon seems to be interested in operating its own cellular network, a report claims, as the giant retailer is looking at a potential Boost purchase. T-Mobile and Sprint did not immediately respond to requests for comment.
Amazon wants to buy a mobile wireless service. The company has grown so fast and previous year it became the second publicly traded USA company to reach a valuation of $1 trillion. But selling Boost Mobile to Amazon might be T-Mobile and Sprint's best chance at fulfilling the Justice Department's alleged demand that the two help create a new carrier.