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Amazon interested in buying Boost from T-Mobile, Sprint

2019-05-31 17:48 by
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A recent report from Reuters claims the retail giant Amazon is interested in buying prepaid cell-phone wireless service Boost Mobile from Sprint and T-Mobile. Amazon is mulling the idea of buying Boost "mainly for an attached wholesale deal" that would allow it to use T-Mobile's wireless network for a half-dozen years or more and may be looking to buy any "wireless spectrum that could be divested," according to people familiar with the plan.

As part of their planned $26bn merger, T-Mobile and Sprint have already pledged to sell Boost to reduce their market share in the prepaid wireless business as they seek regulatory approval for the deal. The two carriers are also considering selling off wireless spectrum to help the merger get approved.

As an MVNO (Mobile Virtual Network Operator), Boost Mobile doesn't own its own network. Instead, it resells Sprint's network, so in the future it would still rely on the merged T-Mobile/Sprint network for service. Buying Boost would reportedly score Amazon a sizable (7-8 million strong) customer base, along with a six-year license to operate on and resell service to the new T-Mobile/Sprint network.

Amazon could face plenty of competition for Boost from companies rumored to be prepping bids such as pre-paid carrier Q Link Wireless, Boost founder Peter Adderton and a number of cable firms and private equity groups.

Read the full Reuters story -here-

 

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