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It’s been over a year since Verizon revealed its plans to purchase TracFone Wireless from America Movil. And yet, the Federal Communications Commission (FCC) agency continues to review the purchase.
Last May, it was reported that Verizon already asked the government agency to expedite its decision on the acquisition. And today, we’re getting word that a CEO of Verizon met with acting FCC Chairwoman Jessica Rosenworcel via teleconference to try and convince her of a favorable decision.
According to the report, Verizon Consumer Group CEO Ronan Dunne and TracFone CEO Eduardo Diaz Corona argued that the merger will introduce a third facilities-based provider in the prepaid industry. Together, the brand will act as competition against Metro by T-Mobile and Cricket Wireless. However, the two did not go into detail how a facilities-based provider would differ from the services of a mobile virtual network operator (MVNO).
Right now, TracFone operates as an MVNO that runs service under the networks of Verizon and other carriers. Majority of its almost 21 million customers, however, are on Verizon’s LTE network. If the merger is successful, Verizon will get to save money on wholesale leasing costs.
Diaz Corona argued that once TracFone will be under Verizon’s management, the brand will be more nimble and competitive since it doesn’t need to negotiate deals with other network operators. As for its existing customers, TracFone promises that the current plans will continue to be available. The merger would also allow TracFone to offer 5G services and devices through Verizon’s network.
Allegedly, one of the concerns Rosenworcel has over the acquisition is TracFone’s Lifeline business. But Dunne promises that Verizon shares the same commitment as TracFone and will continue to offer the currently available Lifeline-supported services. Customers will also get to keep their existing Lifeline service plans if the deal is closed.
There is no decision yet as of this writing.
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