T-Mobile and Sprint are going to sell Boost Mobile and their spectrum to get the approval of the merger next week

T-Mobile and Sprint are increasingly approaching the approval of the merger by working with the Justice Department to divest assets that would create a new fourth wireless service provider. Building on information from a previous report, the New York Times states that operators are in discussion with Dish Network, Charter and Altice in view of the acquisition of Boost Mobile (currently an MVNO of Sprint) and Sprint's valuable wireless spectrum.

This can make the DOJ happy, but would that accomplish anything?

The essential part of the structure of this transaction is that Sprint would effectively divest spectrum shares, not just the Boost Mobile brand that runs on Sprint's existing network. For any new carrier to be a true competitor on any scale, he would need his own spectrum portfolio. If the merger were to be structured with this type of agreement in place, it would probably lessen the pressure resulting from a lawsuit in several states to block the merger on the grounds that it would reduce competition.

Of course, the question is why are we going through all these hurdles just to find ourselves with four American carriers? The combined T-Mobile and Sprint companies would have a sufficient customer base and network infrastructure to compete with Verizon and AT & T. But this new smaller operator based on Boost Mobile, now under the control of a another telecommunications company, would be so small and depart from a disavowed position so that it would become what Sprint is today – a fourth far-out player not defying the bigger three.