Verizon Closes Tracfone Deal; Senators Praise FCC Conditions
Verizon closed its Tracfone acquisition, the company said Tuesday. Verizon paid about $3.1 billion cash and 57.6 million shares, it said: If TracFone keeps achieving certain operating metrics, Verizon will pay up to $650 million more cash. “The addition of…
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the TracFone brands firmly establishes Verizon as the provider of choice in the value segment,” said Verizon Consumer Group CEO Ronan Dunne. Conditions from the FCC’s Monday OK (see 2111220069) “can have real-life benefits for consumers -- if they’re vigorously followed and enforced,” said Democratic Sens. Richard Blumenthal, Conn.; Sheldon Whitehouse, R.I.; Dianne Feinstein, Calif.; Ron Wyden, Ore.; and Ed Markey, Mass. “This deal reflects the firm, important commitments public interest groups and we fought for to preserve Lifeline and budget services.” The completed deal lets Verizon be "aggressive in the prepaid sector without harming its postpaid branding," said GlobalData analyst Tammy Parker. It "should help reenergize the prepaid sector, amping up the competitive fervor" among national carriers' secondary brands including AT&T's Cricket Wireless and T-Mobile's Metro, she said. "On the negative side, despite consumer protections required by federal and state regulators, TracFone’s acquisition removes an independent service provider from the market."