News 2001
Branson announces fast track plans for global expansion of Virgin Mobile
21/02/2001
Sir Richard Branson today announced his intention to make Virgin Mobile the first global virtual network, with non-stop plans which will see Virgin Mobile go into ten countries and across five continents within the next year.
Speaking at the 2001 3GSM World Congress in Cannes, Branson told delegates that Virgin's partnership with Singapore Telecommunications will result in the launch of Virgin Mobile Asia this summer and partnership plans for Virgin Mobile USA will be announced imminently. Europe, Africa, China, India, Indonesia, Hong Kong, Taiwan, Vietnam and elsewhere throughout South East Asia and the Pacific Rim were also cited by Branson as the next places for the Virgin Mobile success story to continue.
Speaking about the success of the company's mobile virtual network operator (MVNO) strategy, Branson urged other network operators not to be nervous of the business model. He said, "I believe no self-respecting GSM or future UMTS network could afford to be without an MVNO."
Branson outlined the benefits of MVNO's for existing network operators.
- A share of new revenues and the creation of a business with sizeable capital value
- Lower set up costs. MVNO's are far cheaper to set up than buying an existing mobile business or building a new network
- An insurance policy. MVNO's offer risk diversification. No-one is sure what the winning data services formula is really going to be. An MVNO with a different strategy on the same network increases the likelihood of success, while stimulating traffic and revenues.
- A win-win situation. MVNO's are great at cutting network churn. If a customer is going to leave an operator isn't it better that they go to the MVNO partner than to a rival? There at least they are still on the network and there's a half share of on-going revenues.
- A different brand. An MVNO will have a different brand to the network. Different brands attract different people. Two good brands together will invariably attract more custom than one good brand on its own.
Virgin Mobile is the world's largest and most successful MVNO and is a £100 million 50:50 joint venture company between Sir Richard Branson's Virgin Group and Deutsche Telekom's One2One. It operates a three-way relationship with One2One, Virgin Mobile's investor, supplier and competitor. The dynamic of this relationship means, that unlike a traditional reseller, One2One has an obligation through its shareholding to always encourage Virgin Mobile to succeed. This is a core component of a genuine MVNO.
For further information, please contact:
Steven Day, Virgin Mobile: 07931 777 777
Debra Burtt/Julia Clarke, Consolidated Communications: 020 7287 2087
Notes to editors:
Virgin Mobile is now established as the most successful virtual network operator in the world. Since its launch in November 1999 it has attracted over 750,000 customers making it one of the fastest growing mobile phone companies ever.
Virgin Mobile is a 50:50 joint venture company between Sir Richard Branson's Virgin Group and Deutsche Telekom's One 2 One, and is the UK's first mobile virtual operator.
It has scored a number of firsts, including being the first operator to scrap peak rate calls, introduce a daily discounting tariff and was the first company in the world to introduce an integrated MP3 mobile phone.
In the UK, Virgin Mobile phones are available direct on 0845 6000 600; on the web at www.virgin.com/mobile; or on the High Street at over 3,500 outlets including Virgin Megastores, Our Price, V Shops and in supermarkets such as Asda and Sainsbury.
With Virgin Mobile, there is no line rental, no monthly contract and the tariff is simple - 15p a minute for the first five minutes of each day and 5p a minute after that.
Virgin Mobile (Australia), a partnership with Cable and Wireless Optus, opened for business at the end of October 2000. A similar joint-venture between Virgin and Singapore Telecom will see the launch of Virgin Mobile (Asia) in summer 2001.
