Dish still plans to buy Boost Mobile, but mum's the word on 5G rollouts
If you’re the least bit familiar with the background information of the long-delayed merger between T-Mobile and Sprint that was finally sealed on April 1, you probably already know a third company actually played a crucial role in getting the transaction across the finish line.
A timid start and an uncertain future
While Dish will not instantly become a major wireless player as a result of the $1.4 billion transaction, this was merely supposed to be the beginning of an aggressive business integration and expansion strategy. Unfortunately, Boost is widely seen as a dying brand, and its ever-shrinking subscriber numbers might prove difficult to, well, boost in the short run due to the many financial difficulties caused by COVID-19.
Interestingly, industry analysts don’t expect the two companies to revisit the negotiation table at the eleventh hour, even though Dish could argue Boost Mobile’s value has significantly eroded since July 2019. Meanwhile, it remains to be seen if Dish still aims to be “disruptive as far as wireless pricing goes” after taking over Boost’s faltering business and becoming a T-Mobile MVNO (mobile virtual network operator), as promised last year.
Given the extraordinary circumstances realistically expected to lead to major delays in nationwide 5G deployments, Dish may well be granted an extension of that deadline by the DOJ or get to dodge the penalties initially agreed upon. That certainly seems fair given how hard it might prove for the company to secure essential financing in this very uncertain economic climate, but let’s just hope Charlie Ergen will not end up abusing the leeway Dish is likely to receive from US government agencies like the FCC… yet again.