By Tony Hallett, 22 November 2004 09:25
NEWS Virgin Mobile USA is considering a flotation, following in the footsteps of its UK cousin and providing further proof of the viability of the mobile virtual network operator (MVNO) model.
Five investment banks, including JP Morgan and Morgan Stanley, advisors on the UK float, have been consulted, according to a report in this morning's FT.
Virgin Mobile USA has around two million customers, many of them youths attracted by the pay-as-you-go approach and Virgin brand, and operates as a joint venture with Sprint, using that national network.
While Virgin did suffer one setback in Asia, withdrawing from Singapore in 2002 shortly after its US launch, it is now thought to be eyeing the massive Chinese market.
The MVNO model has now proved popular in many markets, for Virgin and others, and last Friday saw BT switch its MVNO partner to Vodafone in the UK, redoubling its efforts to win business mobile customers even though it owns no cellular infrastructure itself.
An initial public offering could value Virgin Mobile USA at as much as $2bn, experts say. Virgin Group is not commenting on reports.
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