US mobile operator Verizon Wireless has signalled its intention to expand into the “value” segment of the market with the $6.9 billion acquisition of US low-cost carrier TracFone from America Movil.

Founded in 1996, TracFone operates Mobile Virtual Network Operator (MVNO) services under several different brands, including Simple Mobile, Page Plus Mobile and Total Wireless, powered by wholesale agreements with several major US operators.

TracFone’s 21 million customers and 90,000 retail locations provide a platform for Verizon to grow, while the fact that the latter’s network already powers services for 13 million Total Wireless subscribers mean there are obvious synergies associated with the deal.

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 Wireless Access (FWA) broadband services, 5G, and international calling and roaming packages on low-cost price plans.

“We are excited about the opportunity to bring Tracfone and its brands into the Verizon family where we can put the full support of Verizon behind this business and provide exciting and compelling products into this attractive segment of the market,” said Hans Verstberg, Verizon CEO.

However, approval from the US Federal Communications Commission (FCC) is conditional on ensuring …read more

Source:: TechRadar – All the latest technology news


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