Verizon Buys Tracfone

**Theghostlad82** · 10-05-2020, 07:55 PM

Originally Posted by kevink1

That is the kind of thing that we, as outsiders, can't know. Many times a company will have to show a cost even for internal transactions. So, for example, there may be a "cost" provided to Cricket Wireless for usage of the ATT network. Even though Cricket is ATT. How else are executives supposed to know whether they may be eligible for bonuses, etc.

As outsiders, we can't know how much of a better deal Verizon will offer to their own Tracfone branch than other MVNOs.

And if they and ATT raise prices too much, that helps T-Mobile in this market. Especially as T-Mobile improves coverage.

Unless tmobile also raises their mvno pricing, which, does seem to be the case. Also, TMO does not offer their mvnos the ability to offer fully unlimited data plans, they are all capped at a max of 35gb, then hard throttled to 2g speeds. The only mvno that had an unlimited data option were tracfone brands, which will lose tmobile coverage once this goes through.

As far as the idea of carriers charging their prepaid brands to use the network, this makes no sense, as their prepaid brands are not separate entities, they are brands offered by the parent companies. The parent company isn't the carrier, for example, at&t wireless is not the parent company, the parent company is At&t inc., which has a subdivision called at&t communications, which has 2 brands, one called at&t wireless, the other called cricket wireless. Tmobile US is the parent company, they operate 3 wireless brands (sprint, metro, and tmobile) and also operate their pay tv service under the tmobile US umbrella. If the parent company charged one of their brands for network access, they would have to charge all of them. This is why the prepaid brands all can offer truly unlimited data options, they have no cost per GB that a mvno has. There is no point of data usage where a customer becomes unprofitable.

**DebiLee** · 10-21-2020, 03:27 AM

Welcome to the Big Red family Tracphone customers. Glad to have ya’ll!

**Jack Hagar** · 10-21-2020, 10:19 AM

Originally Posted by DebiLee

Welcome to the Big Red family Tracphone customers. Glad to have ya’ll!

Most are already on teh Verizon network

**Theghostlad82** · 11-26-2020, 06:09 PM

https://coveragecritic.com/2020/11/2...a-green-light/

This may close a little quicker than originally thought. Seems verizon may want to get this done before the administration change.

**techguru30** · 11-27-2020, 06:51 PM

Considering the FCC will be under democratic control with the upcoming Biden administration this acquisition will face an up hill battle to get approval and Verizon will most likely be forced to divest some of the TracFone brands.

**Theghostlad82** · 11-27-2020, 11:01 PM

Originally Posted by techguru30

Considering the FCC will be under democratic control with the upcoming Biden administration this acquisition will face an up hill battle to get approval and Verizon will most likely be forced to divest some of the TracFone brands.

this will only be reviewed by the doj and ftc. The FCC will have zero to do with this as tracfone owns no wireless spectrum and no spectrum licenses will change hands. Not to mention the FCC doesn’t hold the power to force companies to divest brands, they only hold authority over divestiture of wireless spectrum assets, which again, tracfone doesn’t own any. The DOJ would have to be the one to ask for any divestiture of any assets.

**offthegrid** · 12-02-2020, 11:58 AM

Verizon will likely jettison one AM brand for customers who don't move their service to Verizon. There's 12 million customers there now who are on AT&T or T-Mobile. Not sure how they'll incentivize customers to move to Verizon phone wise if a new phone is needed to move.

**Jack Hagar** · 12-02-2020, 02:30 PM

Originally Posted by offthegrid

Verizon will likely jettison one AM brand for customers who don't move their service to Verizon. There's 12 million customers there now who are on AT&T or T-Mobile. Not sure how they'll incentivize customers to move to Verizon phone wise if a new phone is needed to move.

tracphone has 21 million customers in the US of which 13 mil are on the Verizon network

**bobdevnul** · 12-02-2020, 03:08 PM

Originally Posted by Theghostlad82

this will only be reviewed by the doj and ftc. The FCC will have zero to do with this as tracfone owns no wireless spectrum and no spectrum licenses will change hands. Not to mention the FCC doesn’t hold the power to force companies to divest brands, they only hold authority over divestiture of wireless spectrum assets, which again, tracfone doesn’t own any. The DOJ would have to be the one to ask for any divestiture of any assets.

I suspect that the Biden administration DOJ & FTC will not allow this to happen. The CWA has come out against it. Biden is extremely pro-union.

**offthegrid** · 12-03-2020, 10:21 AM

Originally Posted by Jack Hagar

tracphone has 21 million customers in the US of which 13 mil are on the Verizon network

I thought it was 25 million (wikipedia says they had that many in 2015) but since its not they will have to deal with 8 million customers who chose not to use Verizon service - still a large number and no guarantee they keep them.

**Theghostlad82** · 12-03-2020, 10:46 AM

Originally Posted by bobdevnul

I suspect that the Biden administration DOJ & FTC will not allow this to happen. The CWA has come out against it. Biden is extremely pro-union.

Which is likely why Verizon is trying to fast track it right now.

**Jack Hagar** · 12-03-2020, 12:32 PM

Originally Posted by offthegrid

I thought it was 25 million (wikipedia says they had that many in 2015) but since its not they will have to deal with 8 million customers who chose not to use Verizon service - still a large number and no guarantee they keep them.

Verizon to acquire TracFone Wireless, Inc. | About Verizon

**offthegrid** · 12-03-2020, 01:54 PM

Jack, I agreed with your numbers just stating I had based my number on what some other source stated.

My point was not that they had a larger or smaller number of customers just that a significant amount of those customers have chosen not to use Verizon and Verizon has to convert them to gain more value from the purchase.

**Jack Hagar** · 12-03-2020, 02:52 PM

Originally Posted by offthegrid

Jack, I agreed with your numbers just stating I had based my number on what some other source stated.

My point was not that they had a larger or smaller number of customers just that a significant amount of those customers have chosen not to use Verizon and Verizon has to convert them to gain more value from the purchase.

I'm just confirming my numbers in case anyone else is doubtful. Some of those brands do not use Verizon's network. And a lot of people don't know or care which neatwork they are using. Even if Verizon doesn't gain any of those 8 million they'll make more money by owning those 13 million that what they currently get form tracphone

**Theghostlad82** · 12-04-2020, 10:03 AM

Originally Posted by Jack Hagar

I'm just confirming my numbers in case anyone else is doubtful. Some of those brands do not use Verizon's network. And a lot of people don't know or care which neatwork they are using. Even if Verizon doesn't gain any of those 8 million they'll make more money by owning those 13 million that what they currently get form tracphone

I'm sure this is their thinking as well, also the brand they plan on keeping according to all reports is the straight talk brand, so that makes me also think they will keep the Walmart partnership and it gives them a huge retail presence to push the straight talk brand hard in, without it really affecting their core postpaid brand as an alternative in their own retail locations.