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Thread: Verizon officially owns Tracphone

  1. #16
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    Quote Originally Posted by bobdevnul View Post
    All well and good, but will they allow new activations that use AT&T and T-Mo? Also, isn't maintaining existing MVNO agreements only for three years?

    I expect Verizon will game this to the max. Can they discontinue the brands that use T-Mo?
    Simple Mobile and Walmart Family Mobile use only T-Mobile, and yes they could shut these down. AT&T is sparse on any of the TF companies, usually only used for BYOP. Maybe Verizon would start out eliminating activation of new AT&T and T-Mobile BYOP SIM cards?

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    Quote Originally Posted by loboheeler View Post
    Simple Mobile and Walmart Family Mobile use only T-Mobile, and yes they could shut these down. AT&T is sparse on any of the TF companies, usually only used for BYOP. Maybe Verizon would start out eliminating activation of new AT&T and T-Mobile BYOP SIM cards?
    Tracfone could do this without subscribers so much as batting an eye. Now since it’s Verizon, they’re going to be vilified in the media for “forcing” other carriers out.


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    Quote Originally Posted by VoIP2TDM View Post
    Tracfone could do this without subscribers so much as batting an eye. Now since it’s Verizon, they’re going to be vilified in the media for “forcing” other carriers out.


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    As it should because this acquisition was highly anticompetitive.


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    Quote Originally Posted by Haas_Dave View Post
    As it should because this acquisition was highly anticompetitive.


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    yes Verizon with 5 million prepaid an T-Mobile and at&t with 20 million each that perfectly ok. hypocrite much?

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    Verizon officially owns Tracphone

    Quote Originally Posted by Jack Hagar View Post
    yes Verizon with 5 million prepaid an T-Mobile and at&t with 20 million each that perfectly ok. hypocrite much?
    Nope, as Verizon took out an indirect competitor instead of improving their own branded prepaid offerings to actually get customers. They did get somewhere with Visible, but they just wanted easy money using a buyout.


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    Quote Originally Posted by Haas_Dave View Post
    Nope, as Verizon took out an indirect competitor instead of improving their own branded prepaid offerings to actually get customers. They did get somewhere with Visible, but they just wanted easy money using a buyout.


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    So, like TMobile buying metro and Sprint and at&t buying leap wireless? You can't claim one was wrong and the others are ok.

    Lastly, Verizon (or TMobile or at&t for that matter) didn't "take out" anyone. None of these were hostile takeovers, in this instance America movil wanted out of the u.s. market and set a sale price for their TracFone brand, Verizon met the price.

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    Quote Originally Posted by Theghostlad82 View Post
    So, like TMobile buying metro and Sprint and at&t buying leap wireless? You can't claim one was wrong and the others are ok.

    Lastly, Verizon (or TMobile or at&t for that matter) didn't "take out" anyone. None of these were hostile takeovers, in this instance America movil wanted out of the u.s. market and set a sale price for their TracFone brand, Verizon met the price.
    Don’t forget about AT&T buying cricket as well.


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    Quote Originally Posted by Haas_Dave View Post
    Nope, as Verizon took out an indirect competitor
    What did T-Mobile do when it bought Metro PCS then Sprint?

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    Quote Originally Posted by Theghostlad82 View Post

    Lastly, Verizon (or TMobile or at&t for that matter) didn't "take out" anyone. None of these were hostile takeovers, in this instance America movil wanted out of the u.s. market and set a sale price for their TracFone brand, Verizon met the price.
    Yep TracFone could have shut down if it didn't have a buyer. Which by the way T-Mobile never would have been approved to buy Tracfone in whole or part since they weren't allowed to keep Boost. And no way at&t would have been approved to buy them either since they would have a substantial lead in prepaid marketshare. Dish never would have had the money to by all of Tracphone maybe part of it and maybe at&t could have gotten part. Verizon was the only one that could buy a substantial part of Tracfone. Just like the anti-merger people with Sprint who though if the merger was denied somehow Sprit would have kept existent and have bene competitive some people I guess think a company that clearly no longer want to exist and then is turned down for a sale to a buy is just going to say "Ok I keep doing the thing I do not want to do because reasons" Unfortunately too many people think wish fulfilment=reality. reality=reality

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    Quote Originally Posted by JoeInPa View Post
    Don’t forget about AT&T buying cricket as well.


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    Leap was the parent company of cricket, when at&t bought leap they acquired cricket wireless as part of the transaction. That deal though reminds me most of this one. At the time at&t launched their own prepaid subsidiary called aio, (much like Verizon did with visible) then went out and bought a prepaid carrier and eventually merged them under the cricket brand. Now leap did come with spectrum assets that TracFone does not have, but I can see Verizon merging their visible line into the TracFone brand and having TracFone as their main prepaid service provider to compete head on against T-Mobiles metro and at&t's cricket.

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    Quote Originally Posted by Jack Hagar View Post
    3 years is plenty. Why should Verizon buy a company and then still offer service to their competition in 2025?
    I agree completely that three years is plenty. I am not one of those that thinks that a free market economy is evil.

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    Quote Originally Posted by SoNic67 View Post
    If you do the math that's $300 for each customer. That's not "chump change" at all, not for the low cost plans that Tracfone has.
    Keep in mind that about half of that 20 million Tracfone customers are on Safelink Lifeline. They get paid $9.25 a month for each Lifeline subscriber and have to provide a free phone. There's not much profit margin there.

    Then there are people like me who use Page Plus paygo for $2.50 a month. Not much profit there either. I fully expect them to kill the PP paygo plan. It doesn't make any business sense to sell that.

  13. #28
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    Quote Originally Posted by bobdevnul View Post
    Then there are people like me who use Page Plus paygo for $2.50 a month. Not much profit there either. I fully expect them to kill the PP paygo plan. It doesn't make any business sense to sell that.
    If they kill off the PPC paygo plan, it will be the end of PPC. It's all about those who want minimum service. I have never seen a posting in the PPC HoFo forum for the monthly plans, but I know some who use them. PPC used to have a fair amount of retail dealers, but very sparse now even for buying refill cards.

  14. #29
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    Verizon officially owns Tracphone

    Quote Originally Posted by ... View Post
    So, like TMobile buying metro and Sprint and at&t buying leap wireless? You can't claim one was wrong and the others are ok.

    Lastly, Verizon (or TMobile or at&t for that matter) didn't "take out" anyone. None of these were hostile takeovers, in this instance America movil wanted out of the u.s. market and set a sale price for their TracFone brand, Verizon met the price.
    Not all anticompetitive deals are hostile takeovers, many if not most anticompetitive deals are friendly mergers. Take almost every single media company merger that has happened over the last 40 years, especially regarding cable companies and ISPs. Anticompetitive deals reduce (“take out”) competition to artificially limit customers’ choices and lock them in.

    This was clearly anticompetitive because Verizon knew they had to buy Tracfone to gain 7 million customers they wouldn’t have swayed otherwise. All because they slacked for years at offering service people wanted at a reasonable price point.

    Leap/Cricket and Metro acquisitions were anticompetitive, I agree. Same with Sprint, however Sprint had lots of issues in which likely been worse off for the consumer if it was sold in pieces to AT&T and Verizon. At least now T-Mobile can compete on price and eventually coverage.
    Tracfone wasn’t on the verge of bankruptcy or even doing bad financially. Verizon, from what analysts noted started the acquisition talks, wanted to effectively remove the 4th largest cell service provider from competing (they were #4 behind the post merger T-Mobile).

    Anyone remember last year Tracfone was subtly making a “SmartSIM” that used all major US carriers? They were planning to compete better by being a service like Google Fi, and work almost anywhere using a cloud based core network. Verizon probably told them to stop that endeavor once acquisition talks were going forward. Stifling innovation, once again, is anticompetitive conduct.
    Quote Originally Posted by ... View Post
    Yep TracFone could have shut down if it didn't have a buyer. Which by the way T-Mobile never would have been approved to buy Tracfone in whole or part since they weren't allowed to keep Boost. And no way at&t would have been approved to buy them either since they would have a substantial lead in prepaid marketshare. Dish never would have had the money to by all of Tracphone maybe part of it and maybe at&t could have gotten part.
    Except there was no proof, or even speculation, that Tracfone would close up. In fact it continued to have better financials compared to Boost and its parent Sprint, who kept losing money and customers for well over a decade. The two/three providers are not the same.

    Dish could have bought Tracfone, considering they already bought at least two other MVNOs since they acquired Boost.

    The fact that 7 million customers not already on Verizon have to make hard choices soon to keep their intentionally chosen carrier is exactly why this is anticonsumer and anticompetitive. Verizon wants to force customers to take Verizon, even if it isn’t reliable or the customer is in one of many “maps say there’s coverage but not really” areas. I bet if there wasn’t a requirement to keep the wholesale service contracts, Verizon would have quickly stopped customers from using the other two carriers service. That is the only consumer-oriented positive that was enforced on Verizon.

    I think America Movil should have considered selling each brand separately or offered each carrier to buy their respective customer base. That would have been reasonable, rather than shove customers to a carrier they may not want to begin with.

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    Last edited by Haas_Dave; 11-25-2021 at 06:39 AM. Reason: Added the SmartSIM article

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    Verizon officially owns Tracphone

    Quote Originally Posted by loboheeler View Post
    If they kill off the PPC paygo plan, it will be the end of PPC. It's all about those who want minimum service. I have never seen a posting in the PPC HoFo forum for the monthly plans, but I know some who use them. PPC used to have a fair amount of retail dealers, but very sparse now even for buying refill cards.
    I very much expect PPC plans to go away, along with Trac's pay per min/text/data plans (ADDENDUM the updated Tracfone plans page removed some already). They are loss leaders I'm sure, but they have followings with older demographics, those with fixed income and those avoiding a monthly bill for occasionally unused service.


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    Last edited by Haas_Dave; 11-25-2021 at 06:45 AM. Reason: Someone on another discussion site noticed Tracfone's site has removed some plans, added note

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