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News
Issue #2001 - 42
(October 2001)
(Updated Oct.
17, 2001)
ACQUISITIONS,
MERGERS & AGREEMENTS
Sprint and Virgin Announce Joint Venture
After months of rumor and
speculation, its final the Brits’ Virgin Group, with its highly
twenty-something brand, will make its America debut with the backing
of Sprint PCS. The two companies have entered into a joint venture
to offer pay-as-you-go wireless services and handsets to Americans
under the Virgin Mobile brand running on Sprint PCS’ nationwide
wireless network.
"Virgin’s strategic venture with Sprint enables Virgin
Mobile USA to be the first Mobile Virtual Network Operator (MVNO) in
the U.S.," said Richard Branson, chairman of the Virgin Group.
Virgin Mobile USA will target the 15- to 30-year-old consumer
with a prepaid "wireless service that should allow Sprint PCS
to quickly penetrate this market segment in a way that is
complimentary to our efforts," said Charles Levine, president
of Sprint PCS.
During the first half of next year, Virgin Mobile USA will launch
a national service that includes voice and a facsimile of the
British customized service Virgin Xtras, designed specifically for
the youth market. Popular among the Brit’s twenty-something crowd,
Xtras offers sports news, travel and flight booking, movie reviews
and schedules, and music audio previews with the option of
purchasing the selection.
The American wireless operator will contribute $50-million in
services to the venture while the British firm will contribute
$50-million in cash. Under the agreement, Sprint PCS and Virgin will
have an equal share and mutual governance of Virgin Mobile USA.
For more information: http://www.sprintpcs.com
Mobileinfo Comments & Advisory: Good
move by Sprint to get into MVNO model of service offering.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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