Verizon has expressed contentment with the Federal Communications Commission (FCC) approving its acquisition of prepaid carrier TracFone. Plans for the deal first emerged in September last year for an estimated $7 billion.
With around 21 million subscribers, TracFone was one of the largest MVNOs in the U.S. as of last year. Verizon’s Senior VP and Deputy General Counsel of Public Policy & Government Affairs, Kathy Grillo explained the next steps in a statement.
“Verizon welcomes the FCC’s approval today of our TracFone acquisition. The deal will provide customers with the best of both worlds: more choices, better services and new features thanks to Verizon’s investment and innovation,” she said.
“Customers will benefit with enhancements in devices, network performance and innovative products and services — as well as a continued commitment to Lifeline.”
Verizon will soon bring 5G connectivity to TracFone customers
The company said it will honor its commitment towards TracFone customers. “We will work hard to serve TracFone’s current customers and look forward to serving new ones in this dynamic and fast-growing marketplace,” Grillo said in closing.
TracFone operates a number of smaller brands including Total Wireless, Straight Talk, Simple Mobile, and Walmart Family Mobile. Android Central notes it could be a while before TracFone is integrated with Verizon’s networks. There’s unlikely to be any negative impact on existing customers of TracFone, given the robust coverage of Verizon networks.
The MVNO was previously owned by América Móvil, with a presence in over 90,000 retail locations across the U.S. TracFone’s retail partners include the likes of CVS, Target, and Best Buy.
The prepaid carrier relies on networks from other carriers by paying a fee. With over 10 million TracFone customers using Verizon’s networks, this acquisition made a great deal of sense for both parties.
Meanwhile, this is an excellent opportunity for Verizon to bring TracFone’s large prepaid userbase over to its camp. When news of the acquisition first broke, Verizon said it would offer fast 4G LTE and 5G networks to TracFone customers.
Last year was big for MVNOs. T-Mobile handed over Boost Mobile to Dish, while Verizon announced plans to acquire TracFone. This new acquisition will no doubt bolster Verizon’s position in the telecom industry.