Verizon Buys TracFone
Verizon has reached an agreement to buy TracFone, the country's leading prepaid mobile provider and largest reseller of wireless services. TracFone operates a family of value-oriented brands that includes StraightTalk, Net10, Simple Mobile, Total Wireless, PagePlus, Walmart Family Mobile, SafeLink, and ClearWay. As an MVNO, TracFone replies on other mobile networks. Out of 21 million total TracFone customers, 13 million already use the Verizon network. "Following the acquisition, Verizon expects to bring its award-winning 4G LTE and 5G networks and other innovative technologies to Tracfone customers". Verizon already offers its own prepaid service and has a prepaid subsidiary called Visible. Verizon expects to keep all 850 TracFone employees. The $6.25 billion deal is expected to close in about a year.
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The big question is what about Tracfone’s agreements with the other US carriers as it acts as an MVNO for them, with millions of subscribers.