U.S. FCC approves Verizon acquisition of TracFone Wireless

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The U.S. Federal Communications Commission said on Monday it has approved Verizon Communications Inc's more than $6 billion acquisition of pre-paid mobile phones provider TracFone Wireless with conditions to protect low-income consumers.

A man stands next to the logo of Verizon at the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Sergio PerezWASHINGTON, Nov 22 - The U.S. Federal Communications Commission said on Monday it has approved Verizon Communications Inc's

The FCC's announcement followed the California Public Utilities Commission's approval of the deal last Thursday after Verizon agreed to additional consumer-protection conditions. Verizon is the largest U.S. wireless carrier by subscribers. TracFone, a unit of Mexican telecom company America MovilVerizon said in September 2020 it would buy TracFone in a $6.25 billion cash and stock deal with up to $650 million in potential additional future payments.

Verizon welcomed the FCC's approval, saying the deal would "provide customers with the best of both worlds: more choices, better services and new features."Under the California agreement, TracFone or Verizon must participate in Lifeline for 20 years. Verizon said it has committed to participate in Lifeline for at least seven years and will offer existing TracFone Lifeline rate plans for at least three years.

 

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