The image is by Alex Castro.
The Federal Communications Commission voted on Monday to approve the purchase of Tracfone by theVerizon Wireless in a deal worth more than $6 billion.
Tracfone has over 20 million subscribers and more than 90,000 retail locations in the US. The largest mobile virtual network operator is being acquired by the largest wireless provider in the country. When the deal was first proposed, the company said it would bolster Tracfone's networks and make low-income wireless services more competitive.
The FCC said in a Monday press release that the transaction will make both Tracfone and Verizon stronger providers of prepaid and Lifeline services.
The deal was approved by some of the Commissioners. At least one Democrat would have to approve the purchase if there were only two Republicans at the agency.
The FCC said that it would be requiring several consumer protection agreements with the agency as part of its decision to approve the deal. The company promised to continue its participation in the program for seven years. The company must provide cost-effective 5G devices and services to Lifeline customers. The semi-annual reports must describe how compliance meets the restrictions.
The deal was approved by the California Public Utility Commission last week. The California regulators required Tracfone to participate in the program for at least 20 years. The wireless plan price should not increase over the next five years.
