This week, Dish and T-Mobile stated that they agreed to updated terms in relation to their MNSA- master network services agreement. Resultantly, Dish would now pay lower rates to T-Mobile for the use of its networks. Retroactively, these reduced prices would be applied from January 22 this year.
Reportedly, the agreement involves Dish having to pay a minimum purchase commitment of $3.3 billion to T-Mobile till the MNSA lasts. It was entered in July 2020, and comprises a seven year term. Hence, it is clear that five more years are remaining on this agreement. For years, the two sides were involved in a dispute regarding Dish using the CDMA spectrum of T-Mobile. This was essential to the prepaid wireless service of Dish, Boost Mobile.
Both the parties came to a proposed settlement in 2022’s first quarter that led to the resolution of the issue. However, the settlement proposal never received the approval from the Department of Justice, leading to the issue becoming moot following T-Mobile shutting down the spectrum at the end of May.
Currently, the changes in the MNSA, along with its pricing terms and new provision for Boost, have got the green signal from both sides. Moreover, T-Mobile is set to provide some assistance to Dish for customers of Boost who have shifted to T-Mobile’s CDMA network. This includes T-Mobile providing replacements for customers of CDMA.
Additionally, T-Mobile has agreed to transfer all Boost-branded customers of former Sprint affiliated, Shentel & Swiftel, to Dish. Along with it, the customers who were part of California Public Utilities Commission CARE programme. The transfers would expectantly shift over 100,000 customers to Dish.
The new terms of the agreement also eradicates some restrictions on the ability of Dish to offer roaming services to customers within network footprint of T-Mobile. On the other hand, T-Mobile has agreed for the provision of nationwide standard access, along with in-market roaming wireless customers of Dish within its footprint. Essentially, this would include areas within the market as to whether Dish is setting up its own 5G network.
However, these new terms still need approval from the AntiTrust Division of the Department of Justice. Moreover, both the sides stated in case it does not get the approval by August 14 this year, they would have to terminate the agreement unless they agree to an extension. According to analysts, this new agreement would materially increased profit for Boost.
“We are pleased to have reached new terms with T-Mobile that provide Dish with the ability to be more competitive and to meet our customers’ evolving needs,” said John Swieringa, president and COO of Dish Wireless, in a statement. “Dish’s 5G network now covers more than 20% of the U.S. population, and this amendment gives our customers enhanced access to nationwide coverage and in-market roaming while we continue to deploy our own 5G network.”