US mobile operator Verizon Wireless has signaled its intention to expand into the “value” segment of the market with its $6.9 billion acquisition of US low-cost carrier Tracfone from America Move.
Founded in 1996, TracFone operates mobile virtual network operator (MVNO) services under several different brands, including Simple Mobile, Page Plus Mobile and Total Wireless, operated by wholesale agreements with several major US operators.
TracFone’s 21 million customers and 90,000 retail locations provide Verizon with a platform to grow, while the fact that the latter network already provides services for 13 million total wireless customers means that the deal will not be limited to any wireless network. There are clear synergies associated.
Verizon also believes it can grow the business by using its network innovations to add value to subscriptions. For example, it plans to offer fixed wireless access (FWA) broadband services, 5G, and international calling and roaming packages on low-cost plans.
Verizon CEO Hans Wurstberg said, “We are excited about the opportunity to bring Tracfone and its brands into the Verizon family, where we can fully support Verizon behind this business and create an exciting and lucrative entry into this lucrative segment of the market. products can be provided.” ,
However, approval from the US Federal Communications Commission (FCC) is conditional on ensuring that low-income customers are protected and Tracfone continues to participate in a subsidy program for low-income households. Both the cases will be monitored.
“This transaction firmly establishes Verizon as the provider of choice in the value segment through the TracFone brands, which complements our clear leadership in the premium segment,” said Ronan Dunne, CEO of Verizon Consumer Group.
“We look forward to welcoming all of Tracfone’s customers and each of Tracfone’s approximately 850 valued employees. We are excited to expand our relationships with Tracfone’s distribution partners, and when Tracfone’s customers are part of our family.” They’ll get the best of both worlds — more options, better services, and new features thanks to Verizon’s investment — but with the flexibility and control that they come at a price with its prepaid plans. Being is now more important than ever, and Tracfone customers will benefit from Verizon’s innovations – now and in the future.”
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