Feeds

Virgin Mobile tipped to buy Danish outfit

Industry shake-up mulled

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Virgin Mobile is sniffing around Danish no frills, low cost mobile phone outfit, CBB Mobil, according to Reuters.

News of Virgin Mobile's interest in buying CBB coincides with last week's amicable resolution of a bitter row between Virgin Mobile and its 50:50 joint venture partner T-Mobile.

As part of the healing process, Virgin Mobile is also going to buy-out T-Mobile's share in the JV, paving the way for a possible floatation perhaps later this year.

And if Virgin succeeds in buying CBB it could lead to a massive shake-up of the mobile industry in the UK.

According analyst firm Strand Consult, operators such as CBB have helped revolutionise the Danish mobile market. Employing low-cost, no frills business models, these operators have forced down the cost of using a mobile phone.

In the last six months, for example, Strand reports that the price of a mobile minute has dropped from €0.17 to €0.09, while the cost of an SMS has fallen from €0.07 to €0.03.

Now, Strand is seeing the business models employed by this new breed of Danish discount operator being exported to other European countries. Virgin's interest, it seems, is to acquire that expertise and bring it to the UK.

As one senior industry source put it: "The mobile industry would be turned upside down in much the same way that the no-frill airlines have revolutionised the airline industry.

No one from Virgin Mobile was available for comment at the time of writing. ®

Related Stories

T-Mobile and Virgin settle long-running dispute
Virgin Mobile crows over record quarter

Business security measures using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.