T-Mobile US, Inc. and the Sprint Corporation today announced the two companies are one step closer to closing their proposed merger by entering into a consent decree with the U.S. Department of Justice, according to a T-mobile press release.
This action is among one of the last hurdles the two companies must overcome, pending other regulatory approvals and the fulfillment of other closing conditions, before creating what will be known as the New T-Mobile.
T-Mobile would pay $26 billion for the acquisition of Sprint, according to the deal which would place Bellevue-based T-Mobile among the more powerful wireless companies in the world.
The companies also announced agreements with the DISH Network Corporation. This agreement would allow the New T-Mobile to divest Sprint’s prepaid businesses and its 800 MHz spectrum resources to DISH. DISH customers also will be given access to the New T-Mobile network for seven years with a standard transition service period of up to three years.
Contingent on the successful closing of the merger, DISH also has the option to adopt leases for certain cell sites and retail locations that have been decommissioned by the New T-Mobile.
“Today marks an incredibly important step forward for the New T-Mobile,” T-Mobile CEO John Legere said in a statement. “We are ready to bring this supercharged Un-carrier to consumers and businesses across the country, and this milestone brings us much closer to making that vision a reality for customers everywhere.
“Our goal was to ensure that the DOJ’s concerns were addressed while enabling us to deliver on every aspect of the synergies we promised to unlock … and we did it. It may have taken longer than expected by some, but today’s results are a win-win for everyone involved. We cannot wait to get to work bringing this pro-consumer, pro-competition New T-Mobile 5G network to U.S. customers from coast to coast,” Legere continued.
This announcement comes on the heels of the release of T-Mobile’s second quarter earnings report on Thursday. The wireless provider announced it had seen its strongest second quarter in four years with a net of 1.8 million new customers for a total of more than 326 million customers covered by 4G LTE. The company also reported $8.4 billion in total service revenue, up 6 percent year over year.