April 20, 2021

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Dish to Close Boost Purchase by July 1




As of July 1 and in a transaction of $ 5 billion, Dish Network will close the purchase of the prepaid mobile service business of Sprint which in Puerto Rico operates under the brand of Boost Mobile, and part of its spectrum in the 800 Mhz band.

The date appears from the notifications that, separately, the parties submitted on June 17 to the Securities and Exchange Commission (SEC ). Originally, the sale was to be closed on June 1.

The transfer of assets and customers is part of the conditions that T-Mobile agreed with the Federal Department of Justice (DOJ ) and the Federal Communications Commission (FCC) to obtain approval for its merger with Sprint, which was completed on April 1.

“Sprint and Dish agreed to proceed with the closing of the sale of the prepaid business in accordance with the asset purchase agreement on July 1, 2020, subject to the terms and conditions of that agreement and the final ruling (which the DOJ issued to approve the merger) ”reads the notice submitted by T-Mobile and which Dish echoed in its respective process.

Of the $ 5 billion transaction, the prepaid market amounts to $ 1.4 billion, although reports from Bloomberg have collected that the president of Dish, Charlie Ergen, was negotiating a lower price due to the impact of the pandemic in this recovery. A year ago, when the deal was disclosed, Boost had 9.3 million customers in the United States, Puerto Rico, and the Virgin Islands.

Meanwhile, the network and spectrum assets Dish will buy from Sprint are priced at $ 3.6 billion. [19659007] Under the DOJ settlement, Dish is required to offer 5G coverage to 70% of the United States population on or before June 14, 2023. Failing to do so, will have to pay a penalty of up to $ 2.2 billion to the Department of Treasury.

The general manager of T-Mobile in Puerto Rico, Jorge Martel, has indicated in previous interviews that the terms of the parent agreement with Dish extend to Puerto Rico. Meanwhile, at press time, Dish had not indicated to this outlet how it will transition Boost customers in the local market.



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