TracFone, a prepaid provider and subsidiary of the Latin American wireless giant America Movil S.A.B. de C.V., will continue to provide service to Simple Mobile's customer base, which totals more than 1 million customers.
Simple Mobile has added more customers than Leap Wireless since it began operations two years ago, according to BTIG analyst Walter Piecyk in a research note last month.
Simple Mobile operates a business in which customers buy their own phone and activate it with a SIM card.
"The lack of any handset subsidy and inventory management enable the operator to offer very competitive rate plans and the customer has access to a much wider selection of handsets," Piecyk wrote, commenting on SIM-only offerings.
Through the acquisition of Simple Mobile – another wireless provider that offers service without a contract – Miami, Fla.-based TracFone said it can now can offer 4G, mobile broadband and BlackBerry services. To provide 4G services, Simple Mobile relies on T-Mobile's HSPA+ network.
On May 10, America Movil announced an agreement to purchase Simple Mobile. Piecyk said T-Mobile owned 30 percent of Simple Mobile.
TracFone serves about 19.3 million subscribers, according to its website. Its best-known brand, Straight Talk, is offered exclusively at Walmart.