Verizon Tells FCC TracFone Buy Will Mean 5G, More Prepaid Devices

Verizon’s proposed buy of TracFone from America Movil would be a boon to the low-priced carrier's “generally value-conscious set of customers,” giving them more devices to choose from and opportunities to roam on international networks, Verizon said in a still-undocketed filing seeking authorization from the FCC. Verizon unveiled the nearly $7 billion deal last month (see 2009140010). It asks for “streamlined processing” and quick action by the FCC. “The transaction will provide TracFone customers with access to a wider variety of Verizon-compatible devices (including smartphones, tablets, and wearables),” Verizon said. The carrier “will bring its world-class vision for 5G and other technological advances to TracFone’s customers more rapidly, as well as new services such as home internet solutions,” the filing said. Verizon will make international roaming “anticipated to cover more than 100 countries around the world, more broadly available to TracFone customers,” who today have limited options, the document said. The deal is good for consumers overall, “promoting competition” in the wireless prepaid market and accelerating Verizon’s pursuit of those customers, Verizon argues. Verizon is already the “underlying facilities-based carrier for TracFone,” serving almost 64%, or 13.3 million, of TracFone’s customers, the filing said. Verizon has a “small prepaid presence” but not an “established flanker brand that it can use to attract value customers,” it said. AT&T, T-Mobile and Dish Network have prepaid brands, Verizon notes. Prepaid competition won’t be harmed since most TracFone customers are already on its network, Verizon said. It noted TracFone customer rolls have had recent declines. “Verizon intends to use TracFone’s existing distribution points, and to develop thousands of additional distribution points -- some of which will expand distribution exclusively for TracFone brands -- in a variety of geographic areas,” it said.