T-Mobile-Sprint Deal Could Happen If Amazon Takes Boost Mobile: Report

Amazon is reportedly considering buying prepaid wireless service Boost Mobile from Sprint as Sprint and T-Mobile think about divesting assets in an attempt to gain merger approval for their $26.5 billion tie-up.


Retail and tech giant Amazon may have identified the latest market that it wants to conquer: prepaid wireless services.

T-Mobile and Sprint, the third and fourth largest wireless carriers in the country, have been trying to push through their latest $26.5 billion merger attempt. A sale of Boost Mobile could help the carriers pin down approval from the Department of Justice.

According to a report published Thursday night which cited two sources familiar with the matter, Amazon is considering buying Boost Mobile, which is currently one of Sprint’s prepaid wireless brands.

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The sale of Boost Mobile could fetch up to $3 billion and would allow Amazon to use the combined T-Mobile and Sprint wireless network for at least six years, the sources said. Amazon is also reportedly interested in any wireless spectrum that could be divested.

[Related: Partners: Sprint, T-Mobile MegaMerger Could Create A 'Viable' Third Wireless Carrier Option For Channel, Business Customers ]

Representatives from Amazon, Sprint and T-Mobile did not respond to a request for comment from CRN before publication.

The Sprint/T-Mobile tie-up has come under fire recently because the Justice Department has voiced concerns that a combined Sprint and T-Mobile, which the companies are calling "New T-Mobile" for now , would dominate the prepaid wireless space.

Amazon is no stranger to jumping into new businesses. The tech giant bought supermarket chain Whole Foods in 2017 and home video security company Ring in 2018. Today, the Amazon Echo smart speaker product can send and receive phone calls.

According to a report from CNBC on Friday morning, several other companies are "hanging around" for a potential Boost Mobile divestiture following news that Amazon could be interested. Those companies include Dish Network and Comcast, which already has its own wireless service offering.