What You Need to Know About Verizon Buying Tracfone Wireless
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| Verizon Buying Tracfone - What you need to know |
Verizon announced in a statement in 2020 that it had entered into an agreement to buy Tracfone Wireless from parent company América Móvil SAB for just under $7 Billion in cash and stock.
The statement, released on their website on Sept. 14th, 2020, indicated that the deal could close sometime in the second half of 2021. The deal was eventually finalized at the end of 2021, with the acquisition approved by the FCC.
For current Tracfone customers, this could lead to some big changes and we will be sharing all the details we have about this acquisition including what might change, and what it means for current customers.
What Tracfone Customers Need to Know
For many Tracfone customers, not much will change, as 13 million of Tracfone's 21 million total subscribers, already use the Verizon network. It is likely Verizon will continue to offer the same services and prices for prepaid customers going forward. In fact, Verizon just recently announced a new $30 unlimited plan for Verizon prepaid customers.
However, for the 7 million Tracfone customers not currently on Verizon's network, they may be faced with some changes.
Verizon plans to make use of its existing 4G LTE network as well as its emerging 5G network to accommodate and provide service to the new subscribers.
Verizon is also planning to phase out use of ATT and T-Mobile networks and switch all customers over to their own network. Tracfone recently updated their FAQ on their website to include information about this:
"Tracfone will have a carefully managed transition during which customers will be able to move to the Verizon network, including obtaining a device compatible with Verizon’s network if necessary. We will communicate with such customers and you do not need to worry about being surprised." - Tracfone FAQ
As more information about how this transition will occur becomes available, we will update with those details.
It is very likely that Verizon will do as much as they can to keep current Tracfone customers, and even entice new customers from other brands. The post-paid cell phone service market is fairly stagnant, with few customers changing their service provider. But for prepaid, the market is more fluid, with many consumers willing to jump to another service for a better deal. Verizon is looking to boost their own prepaid efforts, and also gain subscribers through purchasing Tracfone.
What Brands Are Affected by Verizon Buying Tracfone?
The Tracfone brand also includes a number of other brands under them that will also be affected by the acquisition:
- Tracfone Wireless
- Net 10 Wireless
- Total Wireless
- Walmart Family Mobile
- Straight Talk
- Simple Mobile
With such a broad variety of brands under Tracfone, it is possible Verizon may move to consolidate some of them.
Verizon is sure to announce more details and plans as the deal progresses, and we will update with any news or changes.
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And be sure to visit our Latest List of Tracfone Smartphones to see what's newly available!
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