The Communications Workers of America (CWA) and several other groups have withdrawn their opposition to Verizon's takeover of MVNO Tracfone, after the operator committed to maintaining services for low-income groups. They were concerned the sale of Tracfone by America Movil to a dominant carrier like Verizon would reduce the amount of low-cost offerings on the mobile market.
In new filings to the FCC, Verizon made commitments to continue offering TracFone’s current Lifeline-supported services for a minimum of three years following the close of the transaction, preserve quality services, maintain robust marketing, and other services. These concessions were recommended by CWA and its public interest allies through multiple FCC filings. Given these new commitments from Verizon, CWA, Public Knowledge, Benton Institute for Broadband & Society, Access Humboldt, and the California Center for Rural Policy have withdrawn their objections to the deal with the FCC.
Verizon agreed the takeover of Tracfone in September 2020 for USD 6.25 billion. Tracfone, which operates under the Straight Talk, Safelink and other brands, had 20.3 million customers at the end of June, down by around half a million from a year earlier. The companies aim to complete the deal by the end of this year, pending final regulatory clearance.
