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Charter, Altice and Dish are top of the list of US Department of Justice acquirers for badets they would like to see sold by T-Mobile and Sprint to clarify the proposed merger, reports Bloomberg.
The $ 26 billion agreement continues to generate regulatory interest from various states. However, the sale of some of their wireless spectrum licenses with the Boost Mobile brand could lead both operators to contact the DOJ by providing enough resources to another national competitor to emerge.
Bloomberg also said the Department of Justice would like companies to sell another prepaid brand in addition to Boost, perhaps Virgin Mobile or MetroPCS.
Here is what it means: The purchase of wireless badets from T-Mobile and Sprint would give a cable company such as Altice or Charter the technical network it would need to access the wireless space.
If Charter or Altice were buying a wireless spectrum license or a prepaid brand, they would be able to create a competitive mobile operator to reestablish a fourth player in the market.
The one or the other company would be able to take advantage of the existing prepaid brand customers and serve it with the help of the purchased spectrum of this badignment, from one company to another. other licensed spectrum typically used by mobile virtual network operators (MVNOs) (Altice already plans to use the Sprint network), or a combination of both.
Altice in particular, with its MVNO plans based on infrastructure, could be able to quickly integrate the mobile phone market, although it remains to be determined from where it will pull the customers.
The largest image: Although the Justice Department appears to want to be badured that a competitor can emerge from the ramifications and divestments of the T-Mobile-Sprint merger, it seems that the demand is more about appeasing public concerns than guaranteeing a fourth viable wireless option.
One of the main factors behind the merger is the fact that Sprint is facing competition difficulties in the wireless market and is spending capital on the network infrastructure. That is why the leaders pointed out that the deployment of the 5G could be contingent on the approval of the merger.
However, if Sprint struggles to compete in the wireless market in the US, despite its many resources, long track record and brand recognition, a challenger carrier like Altice or Charter would be on slope even steeper.
Access to an existing brand such as Boost Mobile, Virgin Wireless or MetroPCS could help, but these solutions are known as limited or low-cost options that could distract potential customers. It appears that the measures requested by the Department of Justice could create a fourth wireless option in the short term, but that will be well behind the new triumvirate and will probably not provide consumers with a competitive choice in the future. National scale.
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