Tuesday, July 28, 2009

Sprint Buys Virgin Mobile

Sprint Nextel Corporation is acquiring Virgin Mobile USA for $483 million, Sprint already owns 13.1 percent of Virgin Mobile, which has been a mobile virtual network operator customer.

The move illustrates the growth of prepaid as a segment within the mobility business, as well as the maturation of the mobile business overall. Organic growth is harder to come by, making growth through acquisition a more reasonable tactic. But the biggest take away is the growth of the prepaid segment, which traditionally has been a segment major operators have shyed away from.


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