Pending approval by the Department of Justice, DISH Network (NASDAQ:DISH) and T-Mobile (NASDAQ:TMUS) have signed an amendment to the 2020 Master Network Services Agreement (MNSA) that provides customers of DISH’s retail wireless brands, including Boost Mobile, access to T-Mobile’s nationwide 5G network.
The agreement stipulates that T-Mobile will help DISH in migrating DISH’s 3G CDMA customers to 5G handsets. In turn, DISH will pay T-Mobile “not less” than a total of $3.3 billion through January 21, 2027. The Term Sheet will not be effective unless it receives DOJ approval by August 14, 2022.
Analyst Jonathan Chaplin of New Street Research said, “If approved, we believe the deal will increase EBITDA and FCF at Boost materially. This should in turn improve access to capital, helping alleviate the most significant issue weighing on the equity. We see no reason why the deal won’t be approved.”
“We are pleased to have reached new terms with T-Mobile that provide DISH with the ability to be more competitive and to meet our customers’ evolving needs,” said John Swieringa, president and COO, DISH Wireless. “DISH’s 5G network now covers more than 20 percent of the U.S. population, and this amendment gives our customers enhanced access to nationwide coverage and in-market roaming while we continue to deploy our own 5G network.”
DISH says it’s committed to providing competition in the wireless market as the nation’s fourth facilities-based carrier and the company will continue to expand coverage of DISH’s 5G network.
“T-Mobile is building a national, Ultra Capacity 5G network with unprecedented capacity, which has put us in a unique position to support partners like DISH,” said Mike Katz, chief marketing officer, T-Mobile. “While DISH customers will benefit from our network, this deal also locks in a multi-billion dollar revenue commitment for our business. It’s a win-win.”