FTC Approves Sprint & Virgin Mobile Deal
| by Rob on August 25th, 2009 |
If you check out the very last article in our back to work post, you’ll see we brought you the news that Sprint purchased Virgin Mobile which was reported by TechCrunch. I’m not sure why the company thinks they can purchase their way out of trouble, especially considering the way the Nextel deal of old ended up. But Sprint wants prepaid customers and thats what they got – the FTC just officially approved the deal so it will definitely go through.
Virgin Mobile will remain a separate brand so we don’t have to worry about a Sprint VirginTel or Sprint NextVirgin or something ridiculous like that – Sprint just wanted the assets and the opportunity. Is it a good deal? Way too early to tell… but shouldn’t Sprint be focused on fixing their core business before they expand outwards and have more of a mess to get in shape?
By the way, Sprint already has their own prepaid division called Boost. Apparently their success in this ultra low-end segment is what provoked the Virgin Mobile purchase. While the FTC has approved the deal, the FCC may also need to chime in on official acceptance since international license transfers are in the mix. But that isn’t considered a problem that will prevent the deal from happening.
I hope you know what you’re doing, Sprint.
[Via YahooTech]
1. John wrote on August 27, 2009
OMG, I really like virgin, now I’m not sure about this marriage. I could care less for Sprint’s business model. I hope they don’t mess up virgin. I have 3 phone through them, and 1 Boost phone. Guess I like prepaid huh? But I don’t think I’m gonna like this, but I guess time will tell.
2. Jemma wrote on August 28, 2009
I think Virgin is already messed. I used to like them but having so many problems right now…{sigh}
To add insult to injury I heard they’re doing welfare phones and special rates to low-income people, which I think is just unfair to their other customers. I’m looking to change my phone at this stage.
3. Whit Bissel wrote on August 29, 2009
I have a question about Virgin Mobile. Are they offering a low-cost pan for unemployed and other people who need a basic phone w/o the big bills? I keep hearing that they make a $10 a month plan available for those who can’t afford more but I don’t see it on their site.
Do they have it? If so why don’t they announce it?
4. lest wrote on August 30, 2009
I think Virgin’s already messed up! They’re giving out welfare deals! They’ve attached cardboard “begger boards” to all their customers necks with this $10 120 minute welfare deal. I hope sprint can restore some of the “young cool factor” Virgin used to have. time will tell…