Boost Founder Peter Adderton Misses Out On US Buyback
Boost Mobile founder Peter Adderton has vowed to keep up the pressure on the MVNO’s expected new owners after missing out on a chance to buy back the US division of the company.
It comes as the US Department of Justice faces criticism it didn’t give rival parties adequate opportunity to bid for assets divested from Sprint Communications as it seeks a merger with rival T-Mobile.
I threw everything at it but looks like I didn’t get across the finish line,I want the @boostmobile Dealers/employee’s that whilst I didn’t get a chance to Buy Boost Back that I will keep the same pressure on @dish as I did @TMobile @sprint to ensure your interests are protected
— Peter Adderton (@peter_adderton) July 26, 2019
Mr Adderton has been a vocal critic, and many of the recommendations he made were adopted by the Department of Justice in approving the merger, including the divestiture of Sprint’s spectrum and prepaid mobile businesses.
Sprint’s prepaid mobile brands, including Boost, Virgin, and its own brand, will be sold to avoid concerns about a lack of competition resulting from the merger.
T-Mobile owns competing prepaid brand Metro, and acquiring Sprint’s prepaid businesses would have given the company sizeable market share in the prepaid sector, where many customers are price sensitive and could be greatly disadvantaged by a lack of competition.
Mr Adderton said he wasn’t offered the chance to bid for his old company, while Reuters reported Charter Communications never heard back from the DOJ about its proposal to purchase the prepaid businesses.
Thought I would recap what I called on @JusticeATR @fcc @AjitPaiFCC to do for merger to be Approved for over a year, May 2018 Boost Mobile to be divested ✅ July 2018 Spectrum to be divested ✅ August 2018 MVNO agreement for 5 to 7 years✅ chance to Bid❌ your welcome @dish🙂
— Peter Adderton (@peter_adderton) July 24, 2019
All sarcasm aside with the Asset’s looking like they will go to @dish it is extremely disappointing for me personally not to get a chance to Bid for @boostmobile understood it was a long shot from the start but I am sure my campaign was effective in getting @FCC to divest boost.
— Peter Adderton (@peter_adderton) July 20, 2019
The brands and spectrum will be sold to pay TV provider Dish as it expands to become the country’s fourth carrier, pending the merger.
The Department of Justice has given federal approval for the deal but several states, including New York and California, are suing to block the merger.
Boost Mobile was introduced to the US in 2001 as part of a joint venture with Nextel Communications, which later bought the brand.
Sprint acquired Nextel and by extension Boost in 2005.