CPUC Approves Verizon’s Acquisition of TracFone With Consumer Protection Conditions

The California Public Utilities Commission (CPUC), in ongoing efforts to ensure reliable and affordable telecommunication services, approved Verizon Communications’ acquisition of TracFone Wireless with consumer protection conditions to ensure the acquisition will be in the public interest. The CPUC's Decision finds that in order for Verizon and TracFone to meet the burden of proving their acquisition is in the public interest, they must adopt a number of specific measures to protect consumers-including California Lifeline customers-from price increases and service disruptions. Verizon and TracFone must migrate all TracFone customers to Verizon’s network within two years following the close of the acquisition, giving priority to TracFone’s current California LifeLine customers at risk of having their service compromised. The Decision also establishes a reporting process as well as an enforcement program to ensure compliance with the conditions ordered, with penalties if specific performance requirements are not met.