US mobile operator Verizon Wireless has announced plans to expand in the value segment of the market with the € 6,9 billion acquisition of US low-cost operator TracFone from América Móvil.
Founded in 1996, TracFone operates mobile virtual network operator (MVNO) services under several different brands, including Simple Mobile, Page Plus Mobile, and Total Wireless, driven by wholesale agreements with several of the major US carriers.
TracFone's 21 million customers and 90.000 retail locations provide a platform for Verizon's growth, while the fact that Verizon's network already powers the services of 13 million Total Wireless subscribers means that 'There are obvious synergies associated with the agreement.
Verizon TracFone
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 broadband wireless access (FWA), 5G, and international calling and roaming plans with low-cost rate plans.
"We are excited about the opportunity to integrate Tracfone and its brands into the Verizon family, where we can bring Verizon's full support to this business and bring exciting and engaging products to this attractive market segment," said Hans Verstberg, CEO of Verizon. .
However, approval by the US Federal Communications Commission (FCC) is conditional on low-income customers being protected and TracFone continuing to participate in a low-income household subsidy program. Both commitments will be monitored.
"This transaction firmly establishes Verizon, through the Tracfone brands, as the provider of choice in the value segment, complementing our clear leadership in the premium segment," added Ronan Dunne, CEO of Verizon Consumer Group.
“We look forward to welcoming all Tracfone customers and each of Tracfone's nearly 850 valued employees. We are excited to expand our relationship with Tracfone channel partners, and when Tracfone customers become part of our family, they will get the best of both worlds: more options, better services and new features through investment from Verizon. , but with the flexibility and control that they have gained value with their prepaid plans. Staying connected is more important than ever, and Tracfone customers will benefit from Verizon innovations, both now and in the future.
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