Exclusive: Amazon interested in buying Boost from T-Mobile, Sprint – sources

(Reuters) – Amazon.com Inc. is interested in purchasing Boost Mobile's prepaid wireless service from US carriers T-Mobile US Inc. and Sprint Corp., two sources close to the issue said Thursday.

Amazon plans to acquire Boost, one of Sprint's prepaid brands, mainly because this deal would allow it to use the wireless network of the new T-Mobile for at least six years, said one of the sources.

New T-Mobile is the name used by T-Mobile and Sprint to designate the new entity that will result from their potential merger.

Amazon would also be interested in any wireless spectrum that could be divested, the source said.

Amazon declined to comment. T-Mobile and Sprint did not immediately respond to requests for comment.

It was not immediately clear why America's largest online retailer wanted the wireless network and its spectrum.

Amazon has already gained experience by offering phone calls via its Echo Connect product, which uses a person's home phone service and allows a Alexa-enabled voice-activated speaker to pass through. calls.

Amazon, which began by selling books, has long been exploring new businesses, such as creating original TV shows for Amazon Prime members. With Alphabet Inc, Apple Inc. and Facebook Inc., it is now one of the four largest technology companies. She is a leading cloud services provider.

T-Mobile and Sprint have already committed to selling Boost as part of efforts to reduce their market share in the prepaid mobile services segment and to obtain regulatory approval for their proposed merger, worth 26%. billions of dollars.

The US Department of Justice should closely examine the buyer of a divested asset to ensure that it would remain viable and preserve competition.

Operators are also considering releasing wireless spectrum, or radio waves carrying data, to advance the merger.

The merger, if approved, would leave the United States with three wireless service providers instead of four. Some consumer advocates have expressed concern that the merger will raise prices for wireless users and have called for an additional competitor.

The Boost sale could yield up to $ 3 billion, had already announced bidders to Reuters.

This month, analysts at Cowen have estimated that Boost has between 7 million and 8 million customers and a transaction could be valued at $ 4.5 billion if the operation included wireless spectrum, or the waves that carry data, and facilities.

Sprint did not reveal the number of Boost customers.