2016-09-15


It looks like the rumors of TracFone buying Walmart Family Mobile (WFM) and GoSmart are true. Both brands Terms and Conditions pages have been updated to reflect TracFone's ownership.

The GoSmart Terms page says 'Your agreement for wireless service branded as “GoSmart Mobile Powered by T-Mobile” is with TracFone Wireless, Inc.'

The Walmart Family Mobile Terms page says 'Your agreement for wireless service branded as “Walmart Family Mobile Powered by T-Mobile” is with TracFone Wireless, Inc.'

The acquisition of WFM's 1.4 million customers and GoSmart's 300,000 brings TracFone's subscriber count to approximately 27 million. TracFone is by far the largest US MVNO and is also the country's largest prepaid operator with 10 million more prepaid customers than second place T-Mobile. TracFone is a wholly owned subsidiary on Mexico's América Móvil, which operates in 15 countries and is the fourth largest mobile operator in the world with 289 million subscribers making América Móvil larger than Verizon and AT&T combined.

TracFone has a history of growth by acquisition. It purchased Simple Mobile in 2012 and Page Plus in 2013. When it acquired those two MVNOs it made no immediate visible changes to either while gradually moving customer and dealer support to TracFone's off shore call centers. I expect it will do the same with GoSmart and WFM. Customers should see little immediate change, but within 12 months I expect WFM and GoSmart support to be integrated with that of the other TracFone brands.

With TracFone now operating the TracFone, Net10, Straight Talk, Simple Mobile, Telcel América, Page Plus, Total Wireless, Walmart Family Mobile and GoSmart brands it's getting harder and harder to find a prepaid service that is not part of TracFone.

It looks like consolidation is the future in the US prepaid industry with smaller MVNOs merging, being acquired TracFone or going out of business. Consolidation unfortunately means less competition and that will likely lead to higher prices.

Source Walmart Family Mobile and GoSmart via HowardForums


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