Sprint and T-Mobile, which are pursuing a US$26-billion merger, have pledged to sell Boost to reduce their market share and gain regulatory approval to merge. Acquiring Boost would give Amazon access to T-Mobile’s network for at least six years. (Reuters)
Talking point: The deal could set up Amazon to be the fourth major wireless carrier in the U.S. The country’s justice department ruled that it wants T-Mobile and Sprint to create a foundation for a fourth competitor as a condition of their merger. Amazon has tried to expand into mobile in the past, without success. In 2015, it stopped selling its Fire phone after poor sales, with consumers balking at the phones US$650 price point in a market saturated with similarly-priced phones. In early May, Dave Limp, Amazon’s senior vice-president of devices and services, said the company could enter the smartphone market if it came up with a “differentiated idea.” Google and Facebook have pursued internet delivery in the past, so having access to T-Mobile’s network could give Amazon an edge in delivering internet to customers.