Reuters is reporting the Mexico based America Movil, TracFone's parent company, is acquiring SIMPLE Mobile for an estimated $100 million. The deal is expected to close by the end of next month.
America Movil is the fifth largest mobile operator in the world with approximately 246 million subscribers, more than AT&T and Verizon combined. Its US subsidiary TracFone, operates under the Straight Talk, Net10, TracFone and SafeLink brands and has about 20 million subscribers. America Movil's founder and chairman is Carlos Slim, who is ranked by Forbes as the world's richest man.
SIMPLE Mobile is a mobile virtual network operator (MVNO) which resells service on the T-Mobile network. It's unusual among US operators as it only sells SIM cards, not phones. SIMPLE has about one million subscribers. TracFone is also a (MVNO) that resells service from many US operators, including T-Mobile.
America Movil has not said what it will do with SIMPLE. I expect that SIMPLE Mobile customer support will eventually be handled by Tracfone call centers but other than that SIMPLE will be run more or less unchanged as another brand under the Tracfone umbrella.
I don't see this acquisition being a good thing for consumers as it reduces competition.