Verizon argues for TracFone purchase to Acting FCC Chairwoman Rosenworcel

The Federal Communications Commission is still reviewing Verizon’s proposed purchase of TracFone Wireless from América Móvil. Verizon CEO of the Consumer Group, Ronan Dunne, and TracFone CEO, Eduardo Diaz Corona, met with Acting FCC Chairwoman Jessica Rosenworcel to try and convince her that the transaction is in the public interest. Their main argument is that a combined Verizon/TracFone will introduce a third facilities-based provider in the prepaid segment to compete against T-Mobile’s Metro and AT&T’s Cricket. An obstacle for Verizon is its lack of a commitment to the FCC's Lifeline Program; while TracFone is a big provider of Lifeline services, Verizon has largely avoided participating in the program to date. However, Dunne said Verizon is firmly committed to TracFone’s Lifeline business and will continue to offer TracFone’s current Lifeline-supported services. The CEO also said that within six months after the transaction closes, Verizon will make available a service plan to Lifeline and other prepaid customers through TracFone that includes 5G service.