Benzinga | Jul 2, 2021 03:00PM EDT

Verizon Ready To Trade Low-Cost Service For TracFone Deal: WSJ

* 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.