T-Mobile, Dish Still Working Out Deal on Boost
T-Mobile and Dish Network appear to be struggling to work out a deal on the sale of Boost, a step required as part of government’s approval of T-Mobile buying Sprint. Dish is supposed to buy Boost for $1.4 billion. T-Mobile…
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has until July 1 to close the sale under an April 1 consent decree (see 2004010069). They are also still negotiating lease terms for T-Mobile’s use of Dish’s 600 MHz spectrum. “We believe that both parties remain focused on getting the deal done,” Citi’s Michal Rollins told investors last week: “There are pre-conditions that New T-Mobile has to satisfy before the transaction could be completed.” The analyst noted Dish disclosed the use of a mediator for the negotiations. “While we hear reports of T-Mobile potentially selling Boost to others, we don’t see that contemplated by the DOJ or FCC documents and we think such a sale would undermine the arguments the federal government entities made to the courts and the public about creating a fourth competitor,” New Street’s Blair Levin said Friday. “DISH likely believes it will have to buy Boost to get the extension and will act accordingly,” Levin said: “While we think it could litigate the issue, the risk of losing is sufficiently high, and the potential cost of being denied the extension would be far greater than the cost of buying Boost.” Dish and T-Mobile declined comment.