T-Mobile on Thursday announced that it has completed its previously announced divestiture of Sprint’s prepaid wireless business, Boost Mobile to DISH Network.
The divestiture fulfills a commitment that T-Mobile and Sprint made to the Department of Justice and to the Federal Communications Commission as part of their merger process.
The divestiture of Sprint’s prepaid business represents more than 9.3 million customers. T-Mobile will receive approximately $1.4B for Sprint’s prepaid business subject to a customary post-closing working capital adjustment. Additionally, the divested prepaid customers and new DISH wireless customers will have full access to the new T-Mobile network in a phased approach through a mobile virtual network operator (MVNO) arrangement, as well as through an infrastructure mobile network operator (MNO) arrangement enabling roaming in certain areas until DISH’s 5G network is built out.
In connection with the closing of the DISH transaction, T-Mobile, Sprint and DISH entered into certain other ancillary agreements, including a spectrum purchase agreement.
Mike Sievert, CEO, T-Mobile
We just checked an important milestone. In closing our deal with DISH to divest Sprint’s prepaid brand, T-Mobile followed through on fulfilling one of the most significant commitments we made as part of this merger process.
