Communications Workers challenge Verizon’s purchase of Tracfone

The Communications Workers of America (CWA) is taking issue with Verizon’s proposed acquisition of Tracfone. The trade union says Tracfone is one of the largest providers of Lifeline services in the United States, and it fears those services could be jeopardized if Tracfone is acquired by Verizon. CWA also says the prospect of the acquisition raises significant antitrust concerns, which could negatively affect consumer prices and workers’ wages in the wireless industry. Verizon is trying to buy the mobile virtual network operator (MVNO) Tracfone for $6.9 billion. CWA doesn’t like that the transaction would bring together Verizon, the nation’s largest facilities-based mobile wireless provider, with Tracfone, the largest mobile virtual network operator (MVNO) and prepaid wireless provider in the US. It says Tracfone has been a long-time supporter of the FCC’s Lifeline program, which helps low-income households afford wireless services.