DOJ may block T-Mobile and Sprint’s merger if divestiture deal isn’t reached next week

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T-Mobile Sprint merger

It’s been a while since there was any major news regarding the T-Mobile-Sprint merger, but a new report claims that there may be some action next week.

The Justice Department will reportedly sue to block T-Mobile and Sprint’s merger if it doesn’t reach a deal with Dish Network next week, sources are telling CNBC. It’s been rumored that the Justice Department wants T-Mo and Sprint to help create a fourth competitive U.S. carrier before it approves the merger, and Dish has allegedly been in talks with T-Mobile and Sprint about buying assets, including Boost Mobile and spectrum, to create that fourth carrier.

It’s said that part of the deal between T-Mobile, Sprint, and Dish is that Dish will get to use the new T-Mobile’s network for three years without restrictions while Dish builds out its own wireless network. The one issue preventing this deal from getting done is that T-Mobile parent company Deutsche Telekom doesn’t want a cable company to buy Dish and then be able to use T-Mo’s network. DT wants Dish to be cut off from T-Mobile’s network if its wireless service is bought by a cable company, but the DOJ is not willing to allow that.

So now it’s said that if DT, T-Mobile, Sprint, and Dish can’t come to an agreement by next week, the Justice Department will sue to block T-Mo and Sprint’s merger. Despite the issue, there is optimism that DT and T-Mo will eventually agree to allow Dish to continue using the T-Mobile network if its wireless service is purchased by a cable company.

Considering all the effort that Deutsche Telekom, T-Mobile, and Sprint have put into previous merger attempts and the progress they’ve made with this latest merger deal, it seems likely that DT and T-Mo would eventually give in and reach an agreement with Dish to help the merger’s odds of success.

Do you think the T-Mobile-Sprint merger will eventually happen? Or will they be unable to reach an agreement with Dish and end up facing a lawsuit from the Justice Department?



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