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Amazon considers purchasing Boost from T-Mobile, Sprint: Reports

Amazon, Boost, T-Mobile, Sprint

There are speculations that Amazon could venture into the wireless sector if the bid comes through

Amazon is considering to purchase Boost, a wireless company from T-Mobile and Sprint, according to several media reports.

The company is interested in the purchase because it would be a wholesale deal that would allow it to use T-Mobile’s wireless network at least for a period of six years.

But media reports state that the reason for Amazon to want the wireless network and spectrum is not clear. The United States Department of Justice will have to investigate the buyer of the divested asset in order to ensure the competition is not diluted.

T-Mobile and Sprint are also looking to divest air spectrum that carry data or wireless spectrum in an effort to go through with the merger.

Amazon is always known for its inclination to explore new ventures. The carriers are seeking deals to sell Boost as part of their strategy to lower market share in the prepaid wireless business.

If the merger is approved, the US will have three wireless carriers instead of four. 

Analysts at Cowen said that Boost has customer base between 7 to 8 million. If the transaction includes wireless spectrum, or the airwaves that carry data, it could be valued at $4.5 billion.

T-Mobile and Sprint have a pending merger worth $26.5 billion which is still under scrutiny by the Justice Department. Last month, the officials warned the two carriers that the merger might not be approved citing competition.

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