Amazon interest in Boost Mobile could save Sprint, T-Mobile merger

JC Torres - May 30, 2019, 9:46 pm CDT
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Amazon interest in Boost Mobile could save Sprint, T-Mobile merger

The marriage of T-Mobile and Sprint has been years in the making and, depending on who you ask, it’s either happening soon or not at all. The merger of the two carriers has been swaying this way and that but the latest rumors suggest that there is just one hurdle left and it’s a big one: convincing the US Department of Justice. Fortunately for the carriers, help seems to be on the way but from the most unlikely of sources: Amazon.

The FCC unsurprisingly already gave its support to the carriers’ plans but the DOJ would have none of that. It is reportedly requiring a few things to be convinced that the merger won’t result in a lopsided market. Among those include the creation of a fourth major US carrier and the divestment of assets and spectrum.

The former might still be an open question but it seems that Amazon has interests in helping with the latter buy acquiring Sprint’s Boost Mobile and some wireless spectrum that the two carriers might want to get rid of. Not for selfless, altruistic purposes, of course. It’s more to give its subscription business a boost, pun definitely intended.

Buying Boost Mobile would give Amazon access to T-Mobile’s wireless network for six years, presuming the merger pushes through. The retailer would then be able to bundle even more services with its Prime subscription. Buying the carriers’ divested wireless spectrum could also be instrumental to Amazon’s Project Kuiper broadband strategy.

Of course, that all now depends on whether the DOJ would approve of the acquisition. The sale could cost Amazon around $3 billion, which is probably peanuts for the company, especially considering what it would gain from it.


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