• Verizon Communications Inc (NYSE: VZ) promised low-cost wireless service for three years to the federal regulators in exchange for the acquisition approval for TracFone, the Wall Street Journal reports.

  • It has also agreed to offer 5G service to Lifeline customers within six months of the acquisition deal’s closing.

  • Lifeline is a federal grant for low-income phone users. The Communications Workers of America union and other public-interest groups have disparaged the proposed merger partners for not detailing specific plans to support the program.

  • In 2020, Verizon agreed to acquire TracFone from America Movil SAB de CV (NYSE: AMX) for up to $6.9 billion.

  • Verizon plans to shift many TracFone users relying on AT&T Inc (NYSE: T) and T-Mobile US Inc (NASDAQ: TMUS) systems over its network if the deal is approved.

  • Verizon still expects to close the deal in 2021.

  • Price action: VZ shares traded higher by 0.34% at $56.38 on the last check Friday.

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