The merger between T-Mobile and Sprint could receive final approval tomorrow

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If Dish enters into an agreement with Deutsche Telekom and Sprint, it will enter into an MVNO deal with T-Mobile that will allow it to use the carrier's network to sell cellular service to consumers in the United States. At the same time, Dish will start building its own 5G network. Originally, Deutsche Telekom wanted to limit Dish's access to a small percentage of the T-Mobile network and also requested termination of the MVNO deal if a third party purchased 5% or more of Dish . The German telecommunications giant fears that a very rich partner, such as Google or Amazon, does take advantage of the opportunity to team up with Dish and use the MVNO deal to quickly become a major competitor of the new T -Mobile faster than expected. In other words, Dish could compete with T-Mobile using its own network for the duration of the MVNO agreement, which is expected to last three years.

Could Dish become a "scariest challenger" for T-Mobile than Sprint?

CNBC reports that, although this decision is risky for Deutsche Telekom, it has decided to drop its objections, saying that advancing without Sprint was worse than positioning Dish as a new competitor. That's because T-Mobile is looking to be the first, in the United States, to build a national 5G network. And with Sprint's mid-range 2.5 GHz spectrum stock, T-Mobile will be able to use its 600 MHz wave and its ultra-high frequency spectrum, combined with Sprint's mid-range spectrum for its 5G network. Verizon plans to stick to mmWave waves, which travel much shorter distances and do not enter buildings, as well as into the low-bandwidth spectrum that T-Mobile possesses. This means that Verizon will take longer to complete a 5G network from one ocean to the other. AT & T intends to follow T-Mobile's strategy of combining mmWave and below 6 GHz frequency bands for its 5G service.
[img center [[347803]]: "T-Mobile and Sprint merger could get DOJ approval Wednesday"]

Some Wall Street badysts believe that allowing Dish Network to enter the wireless business, a long-time dream for CEO Charles Ergen, is not a smart move for T-Mobile. For example, Craig Moffett of MoffettNathanson says Dish could be a "scariest" competitor for T-Mobile than Sprint currently is. After all, if T-Mobile does not get it, Sprint could remain a weak T-Mobile competitor and continue to lose customers. Instead, a merged T-Mobile-Sprint should deal with a company such as Dish, which would probably be ready to lower T-Mobile's prices from the first day.

"If Dish enters the market with a large amount of capacity and no significant subscriber base [average revenue per user] to defend, they would have every interest in the world to be a disruptive discounter. There is no need to believe in a subsequent deal with Amazon, Google or a cable operator to consider this a bad thing for the market, or worse than the "no deal" scenario for T-Mobile. – Craig Moffett, Analyst, MoffettNathanson

Those familiar with T-Mobile's thinking claim that Dish's wireless service will lose a lot of money in the early years. Indeed, under the terms of the MVNO agreement, Dish will have to surrender 50% of the revenue it generates to T-Mobile. But things will change once Dish has its own operational 5G network. Analysts say the Dish network will be more efficient than others because it will be specifically designed for 5G service. As it will be brand new, Dish's network will not be used to connect its clients with 2G, 3G or even 4G dataspeeds.

There is another problem that could block the merger. A lawsuit filed by 13 state attorneys general and the District of Columbia seeks to block the deal. However, a lawsuit may not start until October at the earliest. Unless the judge in charge of the case makes a temporary ban, T-Mobile and Sprint could get the green light to end this long-running drama this week.

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