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FCC Clears Verizon/Tracfone

The FCC cleared Verizon's buying Tracfone with consumer protection conditions, the FCC said Monday. The order was adopted with three commissioners approving and Commissioner Brendan Carr concurring.

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“After rigorous review, the Commission found that the transaction, as modified by Verizon’s enforceable commitments, will make Verizon and Tracfone stronger providers of prepaid and Lifeline services,” it said.

Verizon welcomed FCC approval, the last regulatory OK needed. “Customers will benefit with enhancements in devices, network performance and innovative products and services -- as well as a continued commitment to Lifeline,” said Senior Vice President-Public Policy Kathleen Grillo in a statement. “We will work hard to serve TracFone’s current customers and look forward to serving new ones in this dynamic and fast-growing marketplace.” The California Public Utilities Commission cleared Verizon/Tracfone last week.

FCC conditions include requiring Verizon to keep Tracfone’s Lifeline plans in the same areas for at least seven years and to maintain existing Tracfone rate plans for new and existing customers for three years. Other conditions sought to ensure a problem-free customer migration.

The agency included an enforcement mechanism with an internal and independent compliance officer who will monitor conditions, ensure no harm to low-income consumers and handle consumer complaints about possible violations. The order requires regular public reporting and more than seven years of oversight, the FCC said.