TracFone Wireless

Last updated

TracFone Wireless, Inc.
IndustryTelecommunications
PredecessorTopp Telecom, Inc.
Founded1996;28 years ago (1996), in Miami, Florida, United States
DefunctNovember 21, 2021 (2021-11-21)
FateAcquired by Verizon
Headquarters
Miami, Florida
,
United States
Number of locations
90,000 retail locations
Area served
United States (including Hawaii, Alaska, and Puerto Rico)
Services Prepaid mobile virtual network operator
7,000
Number of employees
400+ (2008)
Parent Verizon Consumer
Website www.tracfonewirelessinc.com/en/home//
Footnotes /references
[1]

TracFone Wireless, Inc. (TFWI) was an American wireless service provider. It was a mobile virtual network operator offering prepaid and no-contract service on the AT&T Mobility, T-Mobile US, and Verizon networks [2] under multiple brands, including TracFone, Net10 Wireless, GoSmart Mobile, Page Plus Cellular, SafeLink Wireless, Simple Mobile, Total Wireless, and Straight Talk Wireless (in partnership with Walmart).

Contents

In 2021, Verizon acquired TracFone Wireless from América Móvil in a transaction valued at around $6.9 billion. TracFone's portfolio of brands were integrated into the Verizon wireless business.

History

TracFone Wireless was established in 1996 as Topp Telecom Inc., a prepaid mobile phone company, in Miami, Florida. It was founded by David Topp and F.J. Pollak. Pollak acted as the CEO of Tracfone until his death in 2016. [3] In February 1999, Topp received a major infusion of capital from Telmex, Mexico's largest telephone company. Telmex paid $57.5 million for a 55 percent controlling interest in the company. [4]

In 2000, Telmex spun off their mobile unit, creating América Móvil, of which Topp Telecom became a subsidiary. In November 2000, Topp Telecom Inc. changed its name to TracFone Wireless Inc. [5] In 2009, TracFone partnered with Walmart to launch its MVNO Straight Talk Wireless. [6]

In 2012, América Móvil acquired rival network Simple Mobile. In May 2013, América Móvil purchased Page Plus Cellular, which had 1.4 million subscribers. [7]

LTE service was inaugurated by TracFone's brands over a year and a half, with Sprint networks handsets first supporting it in May 2013, followed by AT&T four months later in September, then T-Mobile in March 2014. Verizon's TracFone headsets began to be supported in December 2014.

Originally, TracFone service was limited to TracFone-branded phones, which are locked to the TracFone service using an internal SIM card. Other GSM phones, even those that were unlocked from another carrier, could not accept a TracFone SIM card, because these are bound to a specific handset. In 2013, TracFone began to open up its device pool with a 'bring your own device' program, selling SIM cards that could be inserted into qualifying non-TracFone phones (such as Verizon CDMA phones) to connect with the TracFone network. [8] In 2015, the program was expanded to unlocked and compatible GSM handsets.

On September 14, 2020, Verizon announced its intent to acquire TracFone Wireless in a cash-and-stock deal worth up to $6.9 billion. At the time of the purchase, TracFone's brands had around 20 million customers in total. [9] The acquisition was approved by the Federal Communications Commission (FCC) on November 22, 2021, and closed the following day. As part of the purchase, Verizon agreed to provide "cost-effective" 5G services to Lifeline program participants, and continue its participation in the subsidy program for at least seven years. The California Public Utilities Commission (CPUC) mandated further requirements, including that all California customers of TracFone services must be migrated to the Verizon network, Verizon must participate in Lifeline for 20 years and expand its customer base in the program, offer 5G devices at no cost to these customers, and maintain comparable prices for five years. [10] [11] [12]

In November 2022, Verizon reorganized its portfolio of prepaid and low-cost brands into the new Verizon Value division led by Angie Klein, encompassing TracFone and its existing Verizon Prepaid and Visible businesses. [13] Verizon announced that it would discontinue the GoSmart, Net10, and Page Plus brands in November 2024 (November 2026 in California). [14] Customers of TracFone brands are being migrated to Verizon SIM cards and devices. [15]

Verizon rebranded Total Wireless as "Total by Verizon" on September 21, 2022, with the company positioning it as a competitor to AT&T's Cricket Wireless and T-Mobile's Metro. Verizon also began to open dedicated retail outlets, and marketing efforts specifically targeting Hispanic and Latino Americans. On July 11, 2024, the Total Wireless name was reinstated as part of a rebranding, and started to only offer unlimited plans. [16]

Roaming and repair issues

On February 9, 2007, a preliminary settlement in a class-action lawsuit against TracFone was carried out by Jeanette Wagner, and approved in the Boone County Circuit Court in Kentucky. [17] [18] The complainants alleged that TracFone misled consumers by charging a roaming rate in their home calling area (they were charged for 2 units per minute, not the usual 1 unit per minute), and that it refused to extend their prepaid service time during handset repairs. As a result of the settlement, Tracfone gave each of their customers an extra 20 units of airtime.

Misleading "unlimited" plan claims

In January 2015, the Federal Trade Commission started a class action lawsuit naming TracFone and its affiliates, saying that the company cut off or slowed down "unlimited" data to its customers after they reached a fixed 30-day limit. TracFone was being sued over lying to their consumers about "unlimited" data. [19] [20] This led to $40 million in consumer refunds as a result. [21]

Related Research Articles

Verizon is an American wireless network operator that previously operated as a separate division of Verizon Communications under the name Verizon Wireless. In a 2019 reorganization, Verizon moved the wireless products and services into the divisions Verizon Consumer and Verizon Business, and stopped using the Verizon Wireless name. Verizon has 114.8 million subscribers as of March 31, 2024. It currently has the largest network in the United States with their LTE network covering 70% of the United States.

<span class="mw-page-title-main">Telmex</span> Mexican telecommunications company

Teléfonos de México, S.A.B. de C.V., known as Telmex is a Mexican telecommunications company headquartered in Mexico City that provides telecommunications products and services in Mexico. In 2014, Telmex was the dominant fixed-line phone carrier in Mexico. In addition to traditional fixed-line telephone service, Telmex offers Internet access through their Infinitum brand of Wi-Fi networks, data, hosted services and IT services. Telmex owns 90 percent of the telephone lines in Mexico City and 80 percent of the lines in the country. Telmex is a wholly owned subsidiary of América Móvil.

<span class="mw-page-title-main">Fido (wireless carrier)</span> Cellular Carrier

Fido Solutions Inc. is a Canadian mobile network operator owned by Rogers Communications. Since its acquisition by Rogers in 2004, it has operated as a Mobile virtual network operator (MVNO) using the Rogers Wireless network.

<span class="mw-page-title-main">Virgin Mobile USA</span> Former American mobile network provider

Virgin Mobile USA was a no-contract Mobile Virtual Network Operator. It used Sprint's network for coverage. It licensed the Virgin Mobile brand from United Kingdom-based Virgin Group. Virgin Mobile USA was headquartered in Kansas City, Missouri, and provided service to approximately 6 million customers.

<span class="mw-page-title-main">Alltel</span> Former American telecommunications company

Alltel was a landline, wireless and general telecommunications services provider, primarily based in the United States. Before its wireless division was acquired by Verizon Wireless and AT&T, Alltel provided cellular service to 34 states and had approximately 13 million subscribers. As a regulatory condition of the acquisition by Verizon, a small portion of Alltel was spun off and continued to operate under the same name in six states, mostly in rural areas. Following the merger, Alltel remained the ninth largest wireless telecommunications company in the United States, with approximately 800,000 customers. On January 22, 2013, AT&T announced they were acquiring what remained of Alltel from Atlantic Tele-Network for $780 million in cash.

<span class="mw-page-title-main">Sprint Corporation</span> Defunct American telecommunications company

Sprint Corporation was an American telecommunications company. Before being acquired by T-Mobile US on April 1, 2020, it was the fourth-largest mobile network operator in the United States, serving 54.3 million customers as of June 30, 2019. The company also offered wireless voice, messaging, and broadband services through its various subsidiaries under the Boost Mobile and Open Mobile brands and wholesale access to its wireless networks to mobile virtual network operators.

<span class="mw-page-title-main">Claro Company</span> Mexican wireless operator

Claro Company, known as Claro Mexico in Mexico, or simply Claro, is a Latin American telecommunications company, part of América Móvil, a Mexican telecom group. Claro serves clients in Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico and Uruguay. The company's name means "bright," "clear," and also "of course," in both Portuguese and Spanish.

<span class="mw-page-title-main">Solo Mobile</span> Canadian phone company (2005–2017)

Solo Mobile is a discontinued mobile virtual network operator in Canada started by Bell Mobility in 2000. Historically, Solo was considered a discount wireless brand, offering low price monthly plans with some unlimited options in certain cities. Its products and services were only sold in British Columbia, Alberta, Ontario and Quebec. The brand ceased advertising towards new customers since November 2011, and new activations were officially discontinued on May 17, 2012.

<span class="mw-page-title-main">América Móvil</span> Mexican multinational telecommunications company

América Móvil, S.A.B. de C.V. is a Mexican telecommunications corporation headquartered in Mexico City, Mexico. It is the 7th largest mobile network operator in the world in terms of equity subscribers, as well as one of the largest corporations in the world. América Móvil is a Forbes Global 2000 company. As of Q1, 2019, América Móvil had 277.4 million wireless subscribers, and 84.3 million fixed revenue generating units.

<span class="mw-page-title-main">Claro Puerto Rico</span> Puerto Rican telecommunication company

Claro Puerto Rico is one of the largest telecommunications services company in Puerto Rico. It is headquartered in Guaynabo, Puerto Rico, and has operated for almost a century offering voice, data, long distance, broadband, directory publishing and wireless services for the island residents and businesses. It was founded by the Behn brothers, Sosthenes and Hernan in 1914. Originally, Puerto Rico Telephone Company eventually spawned ITT Corporation, which was founded by Sosthenes Behn. The company was a public corporation of the government of Puerto Rico for many years until the majority stakes were acquired by GTE in the mid-1990s. It was a subsidiary of Verizon Communications until it was fully acquired by América Móvil in 2007.

Net 10 can mean:

The postpaid mobile phone is a mobile phone for which service is provided by a prior arrangement with a mobile network operator. The user in this situation is billed after the fact according to their use of mobile services at the end of each month. Typically, the customer's contract specifies a limit or "allowance" of minutes, text messages etc., and the customer will be billed at a flat rate for any usage equal to or less than that allowance. Any usage above that limit incurs extra charges. Theoretically, a user in this situation has no limit on use of mobile services and, as a consequence, unlimited credit. This service is better for people with a secured income.

<span class="mw-page-title-main">T-Mobile US</span> American telecommunications company

T-Mobile US, Inc. is an American wireless network operator headquartered in Bellevue, Washington. Its largest shareholder is Deutsche Telekom, a German company that operates telecommunications networks in several other countries. T-Mobile is the third-largest wireless carrier in the United States, after Verizon and AT&T, with 31.43% of the market share as of June 13, 2024.

The history of the prepaid mobile phones began in the 1990s when mobile phone operators sought to expand their market reach. Up until this point, mobile phone services were exclusively offered on a postpaid basis (contract-based), which excluded individuals with poor credit ratings and minors under the age of 18 In early 1991, Kenneth Johnson of Queens, New York along with Mark Feldman, Pedro Diaz and Kevin Lambright of Alicomm Mobile, was the first to successfully create a prepaid cellular phone and Network. His company expanded to a Sales force from Maine to Florida. Two years later others would come out with similar systems.

<span class="mw-page-title-main">Chatr</span> Canadian mobile virtual network operator

Chatr Mobile is a Canadian mobile virtual network operator owned by Rogers Communications Canada targeting entry-level customers. It is one of three wireless brands owned by Rogers Communications, including Rogers Wireless, and Fido Solutions. The provider launched its service in Toronto, Ottawa, Calgary, Edmonton, Vancouver, Quebec City, and Montreal under the name Chatr Wireless on July 28, 2010. The company re-branded to its current name in 2015.

TruConnect, formally known as TruConnect Mobile, is an American mobile virtual network operator (MVNO) that sells mobile hotspots and smartphones, 3G/4G LTE mobile data plans and prepaid cell phone talk & text plans on both T-Mobile and Verizon networks. TruConnect was the first prepaid broadband provider in the U.S. to offer a pay-as-you-go, portable Wi-Fi service plans. The only Lifeline provider (ETC) headquartered in Los Angeles, CA. TruConnect uses either Verizon's and/or T-Mobile's network depending on location.

<span class="mw-page-title-main">Aio Wireless</span>

Aio Wireless was a prepaid wireless service provider in the United States, wholly owned by AT&T Inc., launched in May 2013.

<span class="mw-page-title-main">Visible by Verizon</span> American wireless carrier

Visible Service LLC, doing business as Visible by Verizon, is an American all-digital prepaid mobile virtual network operator (MVNO) wholly-owned by Verizon. Launched in 2018, the carrier offers services on the Verizon network, with all services delivered via e-commerce and mobile apps, and no brick and mortar retail presence.

<span class="mw-page-title-main">Boost Mobile (United States)</span> Wireless telecommunications brand

DISH Wireless L.L.C., doing business as Boost Mobile, is a United States wireless service provider owned by EchoStar. It operates using the Boost, AT&T and T-Mobile networks to deliver wireless services. As of Q3 2023, Boost Mobile, along with its sister brands Gen Mobile and Ting Mobile had 7.50 million customers.

References

  1. ↑ "About Us". TracFone Wireless. Retrieved December 27, 2012.
  2. ↑ "TracFone prepares a nationwide SmartSIM program". FierceWireless. January 13, 2020. Retrieved September 2, 2020.
  3. ↑ Cohen, Howard (April 8, 2016). "TracFone CEO, Cushman School supporter F.J. Pollak dies at 53". Miami Herald.
  4. ↑ Commisso, Marco (May 3, 1999). "Miami company prepares prepaid cell-phone invasion". South Florida Business Journal.
  5. ↑ "Miami Company Prepares Prepaid Cell-Phone Invasion". South Florida Business Journal. Retrieved December 18, 2009.
  6. ↑ "Walmart Launching Exclusive Straight Talk No-Contract Wireless". CSP Daily News. October 16, 2009. Retrieved July 11, 2024.
  7. ↑ "America Movil to Buy Page Plus Cellular Parent Start Wireless Group". PhoneNews.com. May 20, 2013. Retrieved August 9, 2016.
  8. ↑ "TracFone's Straight Talk starts BYOD iPhone program". FierceWireless. January 18, 2013.
  9. ↑ Fletcher, Bevin (September 14, 2020). "Verizon swoops into prepaid with $6.9B Tracfone acquisition". FierceWireless.
  10. ↑ Kelly, Makena (November 22, 2021). "FCC approves $6 billion Verizon-Tracfone acquisition". The Verge. Retrieved November 23, 2021.
  11. ↑ "Verizon completes TracFone Wireless, Inc. acquisition (press release)". www.verizon.com. November 23, 2021. Retrieved November 23, 2021.
  12. ↑ Alleven, Monica (November 19, 2021). "Verizon's acquisition of TracFone wins CPUC approval | Fierce Network". www.fierce-network.com. Retrieved July 11, 2024.
  13. ↑ Furnas, Dawn (November 16, 2022). "Verizon launches new organization to encompass value brands". NJBIZ. Retrieved March 21, 2023.
  14. ↑ "Verizon reportedly begins weeding TracFone brands". Light Reading. October 12, 2022. Retrieved July 11, 2024.
  15. ↑ "Verizon Migration". m.tracfonewirelessinc.com. Retrieved July 11, 2024.
  16. ↑ O’Brien, Kyle (July 11, 2024). "Total by Verizon Rebrands to Total Wireless for Clearer Differentiation". Adweek. Retrieved July 11, 2024.
  17. ↑ "News Northern Kentucky | The Enquirer". Cincinnati.com. Retrieved December 27, 2019.
  18. ↑ "TracFone Wireless Inc. Roaming Fees Class Action Settlement". Class action news consumers can use. Retrieved February 6, 2011.
  19. ↑ Farnham, Alan (July 30, 2013). "Class Action Suit Claims Walmart and TracFone Mislead Phone Customers". ABC News.
  20. ↑ Morran, Chris (January 28, 2015). "TracFone To Refund $40 Million To Customers For Deceptive "Unlimited" Data Claims". Consumerist.
  21. ↑ Moscaritolo, Angela (January 28, 2015). "TracFone Fined $40M for Throttling 'Unlimited' Data Plans". PCMAG. Retrieved August 29, 2020.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.