Feeds

Virgin and T-Mobile to co-habit after divorce

Thrashing out terms

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

Virgin Mobile and T-Mobile are days away from agreement over dissolving their joint venture, The Sunday Times reports.

And it looks like T-Mobile won't get much or anything in the way of hard cash for its for its 50 per cent stake. Instead, Virgin, a MVNO or mobile virtual network operator as it is known in the trade, will continue to use T-Mobile as its insfrastructure supplier.

Only this time, it will accept worse terms from T-Mobile, The Sunday Times says.

Armed with full ownership, the way will be clear for Virgin Mobile to float. T-Mobile had wanted up to £500m for its stake in Virgin, implying an IPO valuation for the company of £1 billion. This is the high-end of analyst estimates, some of which come in as low as £500m.

Virgin and T-Mobile have been to court a few time squabbling over money. In the most recent round in November 2003, Jonathan Sumption, QC, for T-Mobile said: "Relationships between these parties have broken down - and irretrievably broken down." Now it looks like they are happy to co-habit.

The dispute between the two companies revolves around the £4.56 monthly flat fee paid by T-Mobile for each customer signed up by Virgin. However, it has had pay this sum even if the customer is inactive. Virgin Mobile has three million customers signed up, who are serviced through the T-Mobile network, so there is a hefty loss-making potential for the supplier. ®

Related stories

Virgin and T-Mobile squabble over divorce terms
T-Mobile loses bid to reduce Virgin spend
BT climbs into bed with T-Mobile

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE & Vodafone will let you BONK on the TUBE – with Boris' blessing
Transport for London: You can pay, but don't touch
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.