Sign in Subscribe
Public utilities

CPUC Approves Transfer of Control Over TracFone Wireless, Inc.

Strategic Insights

— 1 min read

The California Public Utilities Commission (CPUC) has approved the transfer of control over TracFone Wireless, Inc., a subsidiary of TracFone's parent company, America Movil, S.A.B. de C.V. The decision was made after a thorough review of the joint application filed by TracFone, America Movil, and Verizon Communications Inc. The application was initially submitted on November 5, 2020, and has since undergone multiple revisions and discussions with various stakeholders.

Key Takeaways:

  • The CPUC has approved the transfer of control over TracFone Wireless, Inc., subject to certain conditions and requirements.
  • The transfer involves the sale of a 49% stake in TracFone to Verizon Communications Inc., with America Movil retaining a 51% stake in the company.
  • The CPUC has imposed conditions on the transaction, including the requirement for TracFone to maintain its prepaid wireless business and not engage in any activities that could be considered harmful to consumers.
  • The transfer is expected to benefit consumers by providing access to Verizon's network and improving the quality of service offered by TracFone.
  • The CPUC has further stated that the transfer will not have a significant impact on the prepaid wireless market in California.
  • Several parties, including the Communications Workers of America and the Benton Institute for Broadband & Society, had expressed concerns over the potential impact of the transfer on the prepaid wireless market and consumers.
  • The CPUC has also received comments from various parties, including next Century Cities and Public Knowledge, who had raised concerns over the potential anticompetitive effects of the transfer.

Statistics:

  • TracFone Wireless, Inc. serves over 21 million subscribers in the United States.
  • The prepaid wireless market in California accounts for over 30% of the region's total wireless subscribers.
  • Verizon Communications Inc. has over 105 million subscribers in the United States.
  • America Movil, S.A.B. de C.V. has operations in over 25 countries, including Mexico, Central America, and South America.

Sources:

  • CPUC - Service Lists - A2011001
  • Joint Application of TracFone Wireless, Inc., America Movil, S.A.B. de C.V., and Verizon Communications Inc.
  • Comments from Communications Workers of America
  • Comments from Benton Institute for Broadband & Society
  • Comments from Next Century Cities
  • Comments from Public Knowledge

Read more