WASHINGTON – The Justice Department has given its blessing to a mega-merger between T-Mobile and Sprint.
The nation’s third and fourth largest wireless carriers reached a deal with the DOJ that will cost them about nine million subscribers.
The companies agreed to spin-off Sprint’s prepaid wireless business to Dish Network.
The satellite company will pay $1.4 billion for those subscribers which includes Boost Mobile and Virgin Mobile customers. Dish will also pay $3.6 billion for some of sprint’s wireless airwaves.
The merger still must win approval from the Federal Communications Commission.
Thirteen states, including New York, and the District of Columbia have also filed a lawsuit to block it.
If the deal goes through, the new company will become the third largest wireless provider behind Verizon and AT&T with about 92-million subscribers.