DISH Network and T-Mobile announced an amendment to the 2020 Master Network Services Agreement (MNSA) that provides customers of DISH’s retail wireless brands, including Boost Mobile, access to T-Mobile’s nationwide 5G network.
The extended deal incorporates financial and operational changes, including improved pricing and enhanced roaming solutions for DISH 5G customers in consideration of an annual minimum revenue commitment through the remaining term of the MNSA.
The term sheet will not be effective unless it is approved by the DOJ by August 14, 2022.
“We are pleased to have reached new terms with T-Mobile that provide DISH with the ability to be more competitive and to meet our customers’ evolving needs,” said John Swieringa, president and COO, DISH Wireless. “DISH’s 5G network now covers more than 20 percent of the U.S. population, and this amendment gives our customers enhanced access to nationwide coverage and in-market roaming while we continue to deploy our own 5G network.”
“T-Mobile is building a national, Ultra Capacity 5G network with unprecedented capacity, which has put us in a unique position to support partners like DISH,” said Mike Katz, chief marketing officer, T-Mobile. “While DISH customers will benefit from our network, this deal also locks in a multi-billion dollar revenue commitment for our business. It’s a win-win.”
DISH is committed to providing competition in the wireless market as the nation’s fourth facilities-based carrier and the company will continue to expand coverage of DISH’s 5G network.
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New T-Mobile to provide network access to DISH for 7 years
The U.S. Department of Justice (DOJ) approved the merger of T-Mobile US and Sprint with the following conditions: Sprint’s prepaid businesses and Sprint’s 800 MHz spectrum assets be divested to DISH. Sprint and T-Mobile must also provide DISH wireless customers access to the New T-Mobile network for seven years and offer standard transition services arrangements to DISH during a transition period of up to three years. DISH will also have an option to take on leases for certain cell sites and retail locations that are decommissioned by the New T-Mobile, subject to any assignment restrictions.
The T-Mobile + Sprint deal was first announced on 29-April-2019. Deutsche Telekom holds approximately 62% stake in T-Mobile US. Softbank holds an 83% stake in Sprint.
https://www.t-mobile.com/news/t-mobile-sprint-merger-doj-clearance
New T-Mobile and DISH Agreements that become effective upon completion of the T-Mobile+Sprint merger
Agreement to Divest Sprint’s Prepaid Businesses
The New T-Mobile will be committed to divest Sprint’s entire prepaid businesses including Boost Mobile, Virgin Mobile and Sprint-branded prepaid customers (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Telecommunications Company and Swiftel Communications, Inc.), to DISH for approximately $1.4 billion. These brands serve approximately 9.3 million customers in total.
Agreements Upon Closing of Prepaid Divestiture
Master Services Agreement for Network Access
Boost Mobile, Virgin Mobile, and Sprint-branded prepaid customers, as well as new DISH wireless customers, will have full access to the legacy Sprint network and the New T-Mobile network in a phased approach. Access to the New T-Mobile network will be through an MVNO arrangement, as well as through an Infrastructure MNO arrangement enabling roaming in certain areas until DISH’s 5G network is built out.
Transition Services Agreement to Support Prepaid Customers
The New T-Mobile will offer standard transition services arrangements to DISH for up to three years following the close of the divestiture transaction. The transition services provided by the New T-Mobile will result in the orderly transfer of prepaid customers to DISH and will also ensure the continued and seamless operation of Boost Mobile, Virgin Mobile, and Sprint-branded prepaid businesses following transition to DISH’s ownership.
Agreement to Divest Sprint’s 800 MHz Spectrum Licenses to DISH
DISH has agreed to acquire Sprint’s portfolio of nationwide 800 MHz spectrum for a total value of approximately $3.6 billion in a transaction to be completed, subject to certain additional closing conditions, following an application for FCC approval to be filed three years following the closing of T-Mobile’s merger with Sprint. This will permit the New T-Mobile to continue to serve legacy Sprint customers during network integration, pending later FCC approval of the license transfer. The companies have also entered into an agreement providing the New T-Mobile the option to lease back a portion of the spectrum sold to DISH for an additional two years following closing of the spectrum sale.
Option for DISH to Take Over Decommissioned Cell Sites and Retail Locations
Following the closing of T-Mobile’s merger with Sprint and subsequent integration into the New T-Mobile, DISH will have the option to take on leases for certain cell sites and retail locations that are decommissioned by the New T-Mobile for five years following the closing of the divestiture transaction, subject to any assignment restrictions.
Agreement to Engage in Negotiations Regarding T-Mobile Leasing DISH’s 600 MHz Spectrum
The companies have also committed to engage in good faith negotiations regarding the leasing of some or all of DISH’s 600 MHz spectrum to T-Mobile.