- Amazon is interested in buying Boost Mobile from T-Mobile & Sprint.
- Boost is a prepaid low-cost MVNO on Sprint’s CDMA network.
- Boost Mobile could go for up to $3 billion.
According to Reuters, Amazon is interested in buying Boost Mobile from T-Mobile & Sprint. Boost is a prepaid low-cost MVNO on Sprint’s CDMA network.
This news comes a week after the chairman of the Federal Communications Commission, Ajit Pai, recommended to the FCC the approval of the proposed $26 billion merger between T-Mobile & Sprint. The Department of Justice has yet to approve the deal.
The sale of Boost is a previously offered concessions by the two carriers to get the merger approved. The sale would reduce the combined company’s market share in the prepaid wireless business.
Boost Mobile could go for up to $3 billion. Boost has around 8 million customers. And the combined T-Mobile / Sprint will have 135 million customers.
Amazon is mainly interested in Boost because the deal would allow Amazon to use T-Mobile’s wireless network for at least six years. Amazon is also interested in any wireless spectrum that could be divested.
This isn’t Amazon’s first run at the mobile business. In 2014, Amazon released the Fire Phone. The Fire Phone, which was offered exclusively through AT&T’s network, was met with lackluster sales and was discontinued.
Q Link Wireless, the third-largest provider of federal Lifeline Program mobile plans, has also shown interest in Boost as has Boost Mobile founder Peter Adderton.
Amazon’s motivations behind buying Boost Mobile are not yet known but it’s possible Amazon may want to try and become a mobile carrier.
