DISH Network Corp DISH and T-Mobile US Inc TMUS agreed, approved by a U.S. court, to extend the deadline for DISH to purchase a set of T-Mobile airwaves. Originally, DISH was supposed to complete the acquisition by August but now has until April 1 to finalize the purchase.
Previously, T-Mobile suggested auctioning off the airwaves to other interested parties pending a deal. The airwaves, operating in the 800 megahertz band, are crucial for mobile connectivity.
Under the agreement, Dish will pay T-Mobile a $100 million extension fee, subject to the approval of the U.S. District Court for the District of Columbia, Bloomberg reports.
US officials ordered the airwaves divestiture to restore competition when T-Mobile snapped wireless provider Sprint Corp in a 2020 deal. The agreement said that if Dish doesn't buy the airwaves, T-Mobile must auction them.
An extension would help "Dish compete as the nation's fourth facilities-based carrier," a spokesperson said.
Dish previously sought an extension backed by the US Department of Justice when it missed the August deadline.
Reportedly, Dish chairman Charlie Ergen is desperate to sell some of the company's assets, trying to sell everything that is non-core and to finance financeable investments.
Price Actions: DISH shares are trading lower by 0.79% at $5.02 premarket on the last check Thursday.
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