By Kim Lyons | Sep 14, 2020 9:33am EDT
The largest wireless network in the US acquires the largest mobile virtual network operator
Verizon is buying Tracfone in a deal worth more than $6 billion, the company announced Sept. 14, 2020. The deal means the largest mobile network virtual operator (MNVO) in the US will become part of the largest wireless provider in the country.
Tracfone is the largest reseller of wireless services in the US, with 21 million subscribers, around 850 employees, and a network of more than 90,000 retail locations. It’s owned by Mexico-based América Móvil, and along with the Tracfone brand, operates the Net10 and Straight Talk brands in the US. More than 13 million Tracfone customers already rely on Verizon’s wireless network; Tracfone doesn’t run its own physical network in the US and instead rides on other cellphone carriers’ systems for a fee.
The acquisition gives Verizon a bigger foothold in the value and low-income wireless segments. Verizon says it will continue to offer Tracfone’s Lifeline service, which allows qualifying customers to receive free phones and free monthly minutes, and StraightTalk, which offers prepaid, no-contract service phone plans.
Read the original article at The Verge.com HERE.
