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Dish’s deal sets stage for Sprint merger
By Nabila Ahmed
Bloomberg News

Satellite TV provider Dish Network Corp. has agreed to pay $5 billion for wireless assets in a deal with T-Mobile US Inc. and Sprint Corp. The deal should allow the Justice Department to sign off on T-Mobile’s merger with Sprint as soon as Thursday, according to people familiar with the matter.

After weeks of negotiations, the parties have hammered out an agreement under which Dish will pay about $1.5 billion for prepaid mobile businesses and roughly $3.5 billion for spectrum, said the people, who asked not to be identified because the details are still private.

T-Mobile also is expected to reiterate that the economic terms of the Sprint deal, which it said would generate about $43 billion in savings, won’t be affected by the asset sale to Dish, the people said.

Representatives for Dish, T-Mobile, Sprint, and the Justice Department declined to comment.

Sprint shares jumped 8.04 percent Wednesday and T-Mobile gained 3.16 percent. Dish slipped 3.93 percent.

T-Mobile and Sprint — and their overseas parent companies — have spent more than a year fighting to get their merger approved. As part of the Dish agreement, the satellite TV company gets a seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brand.

Dish’s role would satisfy the government’s longstanding demand that there be four national mobile service companies remaining, even after the merger of the third- and fourth-ranked carriers.

in the market.

Even if T-Mobile and Sprint secure the Justice Department’s blessing, they face resistance from a group of state attorneys general who say the deal should be blocked because it will hinder competition and raise prices.