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Discussion in 'Wireless News' started by JFB, Nov 24, 2009.
Isn't Virgin Mobile USA just a virtual operator (MVNO) using Sprints physical network? What advantage does Sprint have buying a MVNO that uses their network anyway? Will Sprint keep the Virgin branding?
Virgin Mobile has a well operating pre-pay system, and Sprint does not. There's a lot of money there in these troubled ecconomic times.
the customer base, and the solid brand will be highly beneficial to Sprint while they're going through rough debt and the whole WiMax money hole. like COtech said, Sprint doesnt have a prepay division. buying Virgin Mobile is the first step towards adding one and building upon it. I would argue that keeping the brand name is crucial however because it is one that people may respect more than the Sprint one which has been getting some punches as of late because of customer loss money spent on the WiMax network, etc.
This is smart. It has epic win all over it.
Instead of it being an MVNO using Sprint's network, it is now an owned part of Sprint, with all the benefits that come with that. Sprint can reap the benefits of owning a respected MVNO and build upon it, as others have mentioned.
Keeping the Virgin Mobile name is a smart move because of VM's positive brand awareness and reputation.