TracFone Applauds First Criminal Conviction of International Prepaid Mobile Phone...

TracFone Applauds First Criminal Conviction of International Prepaid Mobile Phone Trafficker

U.S. Court Hands Down Historic Decision, Sets Legal Precedent for
TracFone and Entire Wireless Industry
HOUSTON--(Business Wire)--
TracFone Wireless Inc., the largest U.S. provider of prepaid
mobile phone services, says today's guilty plea by an international
trafficker of prepaid mobile phones is an important milestone in the
industry's battle against the bulk prepaid phone purchasing scheme
throughout the U.S., an activity that includes altering the phones'
proprietary software, repackaging the devices and then reselling them
domestically and abroad to unsuspecting customers.

Muhammad Mubashir, 27, of Sugar Land, Tex., pleaded guilty today
before Judge Melinda Harmon of the U.S. District Court for the
Southern District of Texas to charges of criminally disobeying a
federal court order prohibiting him from continuing to purchase,
tamper with or export prepaid mobile phones.

"TracFone will continue to aggressively pursue those who
participate in prepaid mobile phone trafficking because it undermines
our ability to provide an affordable, quality mobile phone to our
customers," said F.J. Pollak, president and CEO of TracFone Wireless
Inc., based in Miami.

Prepaid phone trafficking is a nationwide concern for the wireless
industry because it has the potential to drive up costs to consumers.
To make wireless service affordable and accessible for everyone,
TracFone heavily discounts the retail price of its phones far below
its own cost, but expects to recoup its investment by providing
service to customers through the sale of airtime cards and other
services.

"Honest consumers are harmed when they purchase these altered
phones sold as 'new.' In most cases, the phones don't work as they
should, and the manufacturer warranty is voided," said James B.
Baldinger, an attorney with Carlton Fields representing TracFone.

Schemes like those organized by Mubashir exist across the country
and involve groups of "runners" who purchase prepaid mobile phones
from major retail outlets. The phones are then passed to middlemen who
alter or remove the prepaid software and resell the altered phones as
"new" at a significant profit to unsuspecting customers domestically
and abroad in Latin America, Asia and the Middle East.

"Prepaid mobile phone traffickers are not legitimate
entrepreneurs," said Baldinger. "We contend they are engaging in
unlawful activity that harms American businesses and consumers. The
fact that one of them is going to jail is a wake-up call for anyone
else engaging in this activity."

About TracFone Wireless Inc.

TracFone Wireless Inc. is the largest prepaid mobile phone service
provider in the U.S., and has been the leader in the 12 years since it
was founded. TracFone is a subsidiary of America Movil (NYSE:AMX), the
fourth largest mobile phone company in the world, and the largest in
all of the Americas with more than 153 million mobile phone
subscribers - more than AT&T, Verizon and Sprint. America Movil is
traded on the New York Stock Exchange under the symbol AMX, and has
been named top technology company by Business Week for the past 2
years (Technology Hot 100). For more information, visit
www.tracfone.com.

Keyword Tags:

tracfone, wireless, prepaid phone

Paul Werth Associates
Michelle Moore, 614-224-8114
mmoore@paulwerth.com

Copyright Business Wire 2008