Feeds

Sprint pays $483m for a bit of Virgin territory

End of road for pay-as-you-go MVNO

Top three mobile application threats

Sprint has snapped up Virgin Mobile USA, folding the brand into its own in exchange for stock that values the operation at $483m.

Not that Sprint will have to raise quite that much: the operator already holds 13.1 per cent of Virgin Mobile USA, as well as being the network on which the MVNO* is hosted. Sprint also runs the Boost Mobile brand, which up until now was a competitor of Virgin Mobile.

Virgin Mobile USA has well over five million subscribers, and has been making money. Sprint reckons that once the deal is completed, it will be able to settle the debts and use the customer base to increase its own prepaid operations.

While prepaid mobiles have revolutionised mobile telecommunications in Europe, the Americans have been much less inclined to hand over cash in advance, despite the advantages of not requiring credit checks (or, more importantly, credit worthiness).

Virgin launched on the premise of anonymous mobile phones (no registration was required) and free-to-receive text messages, both of which were real differentiators back in 2002, and have contributed to the significant market share that Sprint is now able to enjoy. ®

* Mobile Virtual Network Operator - a brand camped on someone else's network.

Combat fraud and increase customer satisfaction

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 threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

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.
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.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
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.