US Justice Department clears USD 26.5 billion merger of T-mobile and Sprint

The United States Justice Department has cleared the USD 26.5 billion merger of T-Mobile and Sprint on Friday, the department announced on its official Twitter account.

The Department of Justice (DOJ) and the Attorneys General for five states reached a settlement with T-Mobile and Sprint regarding their proposed merger. The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market. Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.

Justice Department Settles with T-Mobile and Sprint in Their Proposed Merger by Requiring a Package of Divestitures to Dish https://t.co/8ZILnowoao

— Justice Department (@TheJusticeDept) July 26, 2019

Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint's prepaid business, including Boost Mobile, Virgin Mobile, and Sprint prepaid, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network.

The blockbuster tie-up, which was announced more than a year ago, consolidates the nation's third- and fourth-largest wireless providers and creates a combined company with an enterprise value of roughly $160 billion. But the companies still face a lawsuit from 13 state attorneys general before the deal can go through.