TracFone Wireless, Inc. (TFWI) is an American prepaid, no-contract mobile phone provider. TFWI is a subsidiary of

Verizon Communications Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas i ...

, and offers products and services under several brands. It operates as a

mobile virtual network operator A mobile virtual network operator (MVNO) is a wireless communications services provider that does not own the wireless network infrastructure over which it provides services to its customers. An MVNO enters into a business agreement with a mobil ...

(MVNO), holding agreements with the three largest United States wireless network operators to provide service:

AT&T Mobility AT&T Mobility LLC, also known as AT&T Wireless and marketed as simply AT&T, is an American telecommunications company. It is a wholly owned subsidiary of AT&T Inc. and provides wireless services in the United States. AT&T Mobility is the thi ...

T-Mobile US T-Mobile US, Inc. is an American wireless network operator headquartered in Overland Park, Kansas and Bellevue, Washington, U.S. Its largest shareholder is a multinational telecommunications company Deutsche Telekom AG, which , holds 48.4 perc ...

, and

Verizon Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in ...

. In 2021, Verizon acquired TracFone Wireless, Inc. from Mexico-based

América Móvil América Móvil is a Mexican telecommunications corporation headquartered in Mexico City, Mexico. It is the 7th largest mobile network operator in terms of equity subscribers and one of the largest corporations in the world. América Móvil is a ...

(owner of Claro) in a deal worth up to $6.9 billion, involving 20 million subscribers. The deal was approved by the

Federal Communications Commission The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdiction ...

on November 22, 2021, and closed the following day.

History

TracFone Wireless, Inc. was established in 1996 as Topp Telecom Inc., a prepaid mobile phone company, in

Miami, Florida Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a East Coast of the United States, coastal metropolis and the County seat, county seat of Miami-Dade County, Florida, Miami-Dade C ...

. It was founded by David Topp and F.J. Pollak. Pollak acted as the CEO of Tracfone until his death in 2016. In February 1999, Topp received a major infusion of capital from Teléfonos de México (), a.k.a. TelMex, Mexico's largest telephone company. TelMex paid $57.5 million for a 55 percent controlling interest in the company. In 2000, TelMex spun off their mobile unit, creating

, of which Topp Telecom became a subsidiary. In November 2000, Topp Telecom Inc. changed its name to TracFone Wireless Inc. In 2012, América Móvil acquired rival network

Simple Mobile TracFone Wireless, Inc. (TFWI) is an American prepaid, no-contract mobile phone provider. TFWI is a subsidiary of Verizon Communications, and offers products and services under several brands. It operates as a mobile virtual network operator ...

. In May 2013, América Móvil purchased

Page Plus Cellular Page Plus Cellular is a prepaid mobile virtual network operator in the United States operated by TracFone Wireless, Inc. using Verizon’s wireless network, subsidiary of Verizon Communications. History Page Plus Cellular was established in 19 ...

, which had 1.4 million subscribers. On January 6, 2014, regulatory approval was received and Page Plus Cellular began operating as a subsidiary of América Móvil. 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 Bring your own device (BYOD )—also called bring your own technology (BYOT), bring your own phone (BYOP), and bring your own personal computer (BYOPC)—refers to being allowed to use one's personally owned device, rather than being required to u ...

' program, selling SIM cards that could be inserted into qualifying non-TracFone phones (such as Verizon CDMA phones) to connect with the TracFone network. In 2015, the program was expanded to unlocked and compatible GSM handsets. On September 14, 2020,

Verizon Wireless 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 divi ...

announced its intent to acquire TracFone in a cash-and-stock deal worth up to $6.9 billion. The deal closed on November 23, 2021. The acquisition will likely wind down the agreements to use the AT&T and T-Mobile GSM networks in favor of the Verizon LTE network (as the slower last-generation CDMA network for Verizon is being wound down itself), and as of September 2022, Straight Talk has transitioned to Verizon SIMs and Verizon-compatible phones, along with encouragements to replace TracFone GSM handsets.

Legal issues

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 Kentucky ( , ), officially the Commonwealth of Kentucky, is a state in the Southeastern region of the United States and one of the states of the Upper South. It borders Illinois, Indiana, and Ohio to the north; West Virginia and Virginia to ...

. 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 The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...

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. This led to $40 million in consumer refunds as a result. *

References

External links

*
TracFone.com
{{DEFAULTSORT:Tracfone Wireless Articles needing additional references from June 2017 Companies based in Miami Mobile phone companies of the United States Telecommunications companies established in 1996 Retail companies established in 1996 American companies established in 1996 1996 establishments in Florida Mobile virtual network operators América Móvil 2021 mergers and acquisitions