Amazon could acquire Boost from T-Mobile and Sprint’s merger

The likelihood of Amazon acquiring Boost is high given that it is already building experience in this industry by offering phone calls through its Echo Connect product which allows Alexa-enabled devices to make phone calls.

According to two sources familiar with the matter at hand, Inc is eyeing to acquire Boost Mobile, a prepaid cellphone wireless business, from U.S. carriers T-Mobile US Inc and Sprint Corp.

Amazon is interested mainly because the deal would allow it to use the New T-Mobile’s wireless network for at least six years, said a source. The source went on to add, Amazon would also be interested in any wireless spectrum that could be divested.

New T-Mobile is the name used by T-Mobile and Sprint to refer to the new entity that will result from their potential merger.

Amazon declined to comment.

T-Mobile and Sprint did not immediately respond to requests for comment.

Incidentally, Amazon has already been building experience by offering phone calls through its Echo Connect product, which uses a person’s home phone service and allows an Alexa-enabled voice-activated speaker to make phone calls.

T-Mobile and Sprint have pledged to sell Boost as part of measures to reduce their market share in the prepaid wireless business and gain regulatory approval for their planned $26 billion merger.

The U.S. Justice Department would need to scrutinize the buyer of a divested asset to ensure it would stay viable and preserve competition.

The sale of Boost could fetch up to $3 billion, potential bidders had said previously.

Earlier this month, analysts at Cowen estimated Boost has 7 million to 8 million customers and a transaction could be valued at $4.5 billion if the deal included wireless spectrum.

Sprint has not disclosed the number of Boost customers.

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