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History of Virgin Mobile Usa

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History of Virgin Mobile USA

Virgin, led by Sir Richard Branson, is one of the top three most recognized brands in Britain. The company values money, quality, innovation fun and a sense of competitive challenge. In the past twenty years, Virgin has established more than 200 different corporate entities ranging from airlines, beverages, trains and cosmetics. Also, they usually target the untapped market because they believe that there are great opportunities where the needs and wants of people have not been satisfied yet.

One of the successful ventures of Virgin is its cellular operations in the U.K. where they had signed up approximately 2.5 million customers in a span of just three years. Virgin Mobile launched its first mobile virtual network operator (MVNO) in November 1999. The company leased network space from Deutsche Telekom instead of investing in and running a network in-house.

However, the company did not succeed in Singapore. Virgin Mobile and Singapore Telecommunications entered into a joint venture but it only reached less than 30,000 subscribers after its launch in October 2001. One of the reasons for its failure is that the market had been too saturated to sustain a new entrant. Another reason is that the company’s positioning as the hip and trendy brand did not appeal to the Singapore market.

In 2002, it launched a wireless phone service in the U.S. It was one of the first companies in the country to offer prepaid cellular service. Virgin Mobile was the first prepaid-only provider in the U.S. Virgin Mobile USA had a joint venture with Sprint, one of the countries big carriers. The company’s services were hosted on Sprint’s PCS network wherein Virgin Mobile would purchase minutes from Sprint. In 2004, they came up with “Chrismahanukwanzakah” which was a fictional holiday used in an advertising campaign aired during the Christmas season. This fictional event was a combination of three elements namely Christmas, Chanukkah and Kwanzaa for political correctness during Christmas season. The fictional event was used again in 2007. In May 2007, the company started an initial public offering filing with the United States Securities and Exchange Commission. In the following year, the company signed an agreement to acquire Helio from SK Telecom and Earthlink for $39 million. On July 1, 2008, he company introduced the $79.99 unlimited plan which offers unlimited anytime minutes. Lastly, Virgin Mobile USA completed its $38 million acquisition with Helio. It was launched in November 12, 1999. It was known all over the world for its easy handle, light weight and easy to operate menu features.

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