AMOV - FCC gives conditional clearance to Verizon's $6 billion TracFone purchase

Verizon (VZ +1.5%) has won clearance from the Federal Communications Commission for its $6 billion purchase of TracFone wireless (AMX -0.9%), with conditions. That largely clears the way for Verizon to taker over America's leading prepaid/value mobile provider, picking up its more than 20 million customers along the way. The FCC found some potential harms in the deal, in particular that TracFone is one of the most significant participants in the Lifeline low-income mobile subsidy program. It also noted Verizon may have increased incentive to raise prices for the MVNOs that buy service from Verizon and compete with TracFone. Conditions it's adopting in response include measures to protect low-income consumers from price hikes and to ensure TracFone remains a "supportive" participant in Lifeline. The FCC is calling for seven years of oversight on those matters, and demanding both an internal and independent compliance officer to monitor the conditions. Verizon and

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FCC gives conditional clearance to Verizon's $6 billion TracFone purchase