Horrible decision.
It's going to take Dish Network a decade, if they're lucky, to build out their own network. Besides, where are they going to get all the money from to do it? Their revenue and net income has been on the decline for a few years now due to massive cord cutting.
https://www.wsj.com/articles/cord-cutting-clips-dish-networks-profit-11556911471
Dish Network Corp.’s first-quarter profit fell 7.6% as its satellite-TV customer base continued to shrink, adding pressure on the telecom company to find new income sources.
The company lost 266,000 satellite customers during the three months that ended March 31, while internet-based Sling TV added 7,000 customers, its smallest-ever quarterly gain. Dish ended the period with 12.1 million pay-TV subscribers.
“It’s still a declining business,” Executive Chairman Charlie Ergen said during a conference call.
Dish’s first-quarter profit totaled $339.8 million, or 65 cents a share, down from $367.6 million, or 70 cents a share, a year earlier. Revenue fell 7.8% to $3.19 billion.
Dish needs to build out their 5G network that covers at least 20% of U.S. population by 2020, and 70% by 2023. If they don't, there's a $2.2 billion fine.
From what I've read, it will cost Dish at least $10 billion to build out their network to have 50,000 cell sites (the same # as what Sprint has today). It will cost them billions more (
close to $25 billion) if they want to be able to compete with Verizon, AT&T, and T-Mobile/Sprint.
As of the end of March 2019, Dish had $1,577 million of cash on hand and $15.93 Billion in debt.
Buying Boost Mobile and Virgin Mobile customers, spectrum, and other debt + assets from T-Mobile/Sprint will cost Dish $5 billion.
I'd also like to point out that these Boost Mobile and Virgin Mobile customers are pre-paid customers. These are the least desirable customers because they're the least loyal (high churn rate) and least profitable.
A 4th carrier made up of Boost Mobile and Virgin Mobile customers will be weaker than a standalone Sprint. By approving this merger, the DoJ is setting up Dish Network for failure because Dish will be buying Sprint and T-Mobile's weakest and least desirable assets. The DoJ is actually doing T-Mobile/Sprint a favor by getting Dish to buy up their garbage.
Think about it... if Sprint was barely able to survive on their own, how is Dish going to survive and be profitable with less subscribers than what Sprint has now all the while spending billions they don't have to build out their own network from scratch?