"History has shown that positive pledges and good intentions without binding commitments has been insufficient to protect consumers and workers."
Washington (July 21, 2021) - U.S. Senators Edward J. Markey (D-Mass.), Richard Blumenthal (D-Conn.), Sheldon Whitehouse (D-R.I.), Dianne Feinstein (D-Calif.), and Ron Wyden (D-Ore) pressed the Federal Communications Commission (FCC) today to probe Verizon's proposed acquisition of TracFone and secure specific commitments from the company to ensure that this acquisition will not harm consumers. In the $6.9 billion transaction, Verizon would acquire one of the largest operators of the Lifeline program which provides free or discounted internet and affordable prepaid mobile phone services to low-income Americans. TracFone's SafeLink Wireless Brand supports 1.7 million Lifeline subscribers in 43 states and approximately 21 million customers overall.
"We are concerned that Verizon does not have a sufficient record on supporting Lifeline for its current wireless services and has provided few enforceable commitments to the FCC within the proposed TracFone transaction," wrote the senators to FCC Acting Chairwoman Jessica Rosenworcel. "While we note Verizon's stated goal of maintaining these services, Verizon would have significant incentives and opportunities to push subscribers from Lifeline and inexpensive prepaid services to higher revenue plans."