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Verizon to buy prepaid phone seller Tracfone for up to $6.9B

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Verizon, the country's largest phone company, is buying prepaid phone seller Tracfone for up to $6.9 billion, expanding its low-income customer business.

Tracfone, a subsidiary of Mexico telecom giant America Movil, is the largest U.S. mobile reseller.

It doesn't build its own network, instead paying companies like Verizon, AT&T and T-Mobile a fee to use theirs.

Nearly two-thirds of Tracfone's 21 million U.S. customers get their service from Tracfone renting Verizon's network.

Verizon said it expects the deal to close in the second half of 2021. Regulators must approve it.

AP Technology Writer

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Associated Press

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