Update 11/23/21: The FCC has approved the proposal:
“After rigorous review, the Commission found that the transaction, as modified by Verizon’s enforceable commitments, will make Verizon and Tracfone stronger providers of prepaid and Lifeline services,” the FCC said in a press release.
Original story below:
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Just a few days ago, it was reported that the California Public Utilities Commission (CPUC) has given the green light on Verizon Wireless’ proposed acquisition of TracFone. The decision was made as long as all conditions were met. And today, it looks like another key player in the decision appears to be nearing its decision.
As reported by Reuters, it looks like the Federal Communications Commission (FCC) is close to approving the acquisition. On Friday, Jessica Rosenworcel, acting chair of the committee, was said to have started circulating an order to approve the acquisition. This comes after the CPUC set conditions for the acquisition. One of those conditions required either company to take part in a subsidized-wireless service program for low-income customers for up to 20 years.
On Friday, Verizon promised that it would continue its involvement in the Lifeline program for at least seven years. They also promised to continue offering the existing Lifeline plans for at least three years. It also promised to sign up at least 200,000 Lifeline subscribers from California before 2025 ends.
Verizon first showed interest in acquiring TracFone in September 2020. Verizon believes that it could make TracFone even bigger “in the prepaid and value mobile provider” space. If all goes well, Verizon’s goal of getting the deal approved before the year ends could be coming true.
Source: Reuters
