US Senators Want To Ensure Verizon TracFone Deal Does Not Raise Prices

Five Democratic US senators on Wednesday urged the Federal Communications Commission (FCC) to ensure Verizon’s proposed $6.9 billion acquisition of pre-paid mobile phones provider TracFone does not raise prices or impact government programs to provide access to mobile phones for low-income Americans.

TracFone is one of the largest providers of telecommunications services under the government subsidy program known as Lifeline with 1.7 million low-income subscribers in 43 states and the District of Columbia.

Senators Richard Blumenthal, Sheldon Whitehouse, Dianne Feinstein, Ron Wyden and Ed Markey said in a letter “Verizon would have significant incentives and opportunities to push subscribers from Lifeline and inexpensive prepaid services to higher revenue plans.”

Verizon said in September it would buy TracFone, a unit of Mexican telecom company America Movil, in a cash and stock deal.

The company said the proposed deal “will bring value and benefits to value-conscious consumers in a myriad of ways.”

In February, the attorneys general of 16 US states and the District of Columbia urged the FCC to thoroughly investigate the deal.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.