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Wal-Mart to expand TracFone services

October 15, 2009

The retail giant will reportedly expand its low cost TracFone offerings nationwide.


Bentonville, Arkansas (WiredPRNews.com) - Beginning October 18, Wal-Mart will expand its offer of lower priced mobile services nationwide. As reported by Reuters, the news is disheartening for competitors such as Leap Wireless International Inc. and Metro PCS whose stock fell Wednesday shortly after Wal-Mart announced its plans.


Soliel/Nelson Alpha research analyst Michael Nelson is quoted by Reuters as stating of the changes, “This clearly represents increased competition for the entire wireless sector and in particular for the limited pay in advance segment of which Leap and MetroPCS are really likely to be negatively impacted the most.”


Wal-Mart is stated in the report to have said that the response to a trial plan launched over the summer was overwhelming. The plan reportedly requires no contract and is expected to prompt other wireless providers such as Sprint Nextel to being offering similar services.


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