América Móvil's U.S. TracFone unit banked on its acquisition of 1.4 million subscribers from Page Plus Cellular in the first quarter for the vast majority of its customer growth. Absent the deal, TracFone added 452,000 customers organically in the quarter, weaker than in the year-ago period.
América Móvil's U.S. MVNO, TracFone Wireless, returned to a brisk pace of subscriber growth in the fourth quarter of 2013 after growth stalled in the third quarter. However, the company was unable to meet the subscriber growth it showed in the fourth quarter of 2012.
América Móvil's U.S. MVNO, TracFone Wireless, acquired Start Wireless' Page Plus Cellular, an MVNO that counts around 1.4 million customers in the United States. The action is TracFone's second major acquisition after its purchase of T-Mobile US MVNO Simple Mobile and its 1 million customers almost exactly a year ago.
Verizon Wireless MVNO Page Plus Cellular this week introduced a new $69.95 prepaid plan geared toward smartphones. The action is a response to the growing popularity of smartphones among Americans and increasing competition among MVNOs looking to entice subscribers with low prices and expanded data allowances.