Amazon wants to buy Boost Mobile from Sprint and T-Mobile, report says
T-Mobile and Sprint may have to sell off Boost Mobile to push their merger through, which could pave the way for Amazon to become a wireless service provider.
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Amazon may provide a new wireless service.
Amazon is interested in snapping up the Boost Mobile prepaid wireless service if Sprint and T-Mobile decide to divest it to push through their $26.5 billion merger, a report says.
The online retail giant wants Boost so it can use T-Mobile's wireless network for the next six years as part of an attached wholesale deal, Reuters reported Thursday.
"Amazon would also be interested in any wireless spectrum that could be divested," Reuters reported sources as saying.
Federal Communications Commission Chairman Ajit Pai earlier this month greenlit the merger, on the condition that T-Mobile and Sprint divested Boost Mobileas well as requiring them to build out 5G in rural areas and offer wireless home broadband good enough to substitute fixed-line.
Amazon's supposed interest follows reports earlier Thursday that the US Department of Justice wants T-Mobile and Sprint to form a new wireless carrier.
The merger would reduce the number of major carriers from four to three, with Justice Department antitrust chief Makan Delrahim wanting four carriers to remain for more competition, according to Bloomberg.
T-Mobile and Sprint are the third- and fourth-largest carriers behind Verizon and AT&T . Should they merge, T-Mobile CEO John Legere would remain in his role.
While the FCC has approved the transaction, the merger still needs approval from the DOJ. Earlier this month, the DOJ was considering halting the deal, and possibly requiring the carriers to divest wireless spectrum or other parts of their businesses.
Sprint and T-Mobile didn't immediately respond to a request for comment. Amazon declined to comment.