WASHINGTON: US authorities on Friday approved the $26 billion merger of wireless carriers T-Mobile and Sprint in a deal that brings together the third- and fourth-largest operators in the sector.

The deal calls for Sprint to sell some of its prepaid wireless operations to Dish Network, to allow for a new competitor, as well as the divestment of some spectrum assets.

Makan Delrahim, head of the Justice Department's Antitrust Division, said the agreement "will provide Dish with the assets and transitional services required to become a facilities-based mobile network operator that can provide a full range of mobile wireless services nationwide."