Amazon wants to buy a mobile wireless service.
Reuters reported Thursday that the tech giant is interested in acquiring prepaid wireless service Boost Mobile from T-Mobile and Sprint.
Part of Amazon’s interest in buying Boost is a wholesale deal that would give it access to T-Mobile’s wireless network for at least six years, as well as access to wireless spectrum, Reuters reported.
Amazon declined to comment on the Reuters report, which noted that “it was not immediately clear why the U.S. online retail giant and cloud services provider would want the wireless network and spectrum.”
T-Mobile and Sprint have a pending $26.5 billion merger that is still under consideration by U.S. regulatory bodies. Selling off Boost has been floated as one potential concession to gain approval.
Last month, reports surfaced that Justice Department officials warned the companies that their merger wasn’t likely to receive approval under the current proposal. DOJ officials are reportedly not buying the companies’ arguments that a combined T-Mobile and Sprint will increase competition with larger rivals AT&T and Verizon and up U.S. competitiveness in the next generation of wireless technology known as 5G.
Bloomberg reported this week that officials want T-Mobile and Sprint to set the table for a new wireless carrier, complete with its own network, as a concession for approval of the merger.
FCC Chair Ajit Pai earlier this month gave his approval of the merger thanks to commitments from the two wireless companies that included a divestment of Boost.
In April 2018, T-Mobile and Sprint agreed to merge and create a $146 billion company under the T-Mobile name.
We’ve reached out to T-Mobile for comment and will update when we hear back.
