NTL Purchases Virgin Mobile

NTL Purchases Virgin Mobile

Tom Warren on 04 April 2006 - 10:24 · 11 comments & 5311 views

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Ending months of speculation, NTL Telewest has reached an agreement to takeover Virgin Mobile.

The deal, estimated at more than £900 million will boost NTL allowing them to offer TV, internet access, fixed line phones and mobile phones.

The takeover is expected to create greater competition between NTL and BskyB, BT and Vodafone.

We're not expecting many changes as Virgin Mobile will keep its name for 30 years and Virgin Mobile's management division will stay on and manage the business.

View: NTL

View: Virgin Mobile

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(4 replies) #1 Quick Reply on 04 Apr 2006 - 10:38

Does this cover overseas Virgin mobile in Australia?

Source?

#1.1 vertigosity on 04 Apr 2006 - 10:49

If I had to guess, I'd say it probably doesn't, since there's a million and one "Virgin such-and-such" companies that operate fairly independantly of one another; but I too am curious if this affects Virgin Mobile overseas, but in the U.S.

#1.2 Xerxes on 04 Apr 2006 - 11:17

Probally not, it's like how Optus here in Australia is planning to buy out (or has, I'm not sure) Vodafone and this only applies to thier Australian operation (no source sorry, read it in the paper) so I'm guessing it's probally the same with this, but is only a guess since I could be wrong.

Edit: I'm wrong sorry, it's actually the other way around!

Vodafone tried to buy Optus, but SingTel got there first..and that was over 5 years ago! nevermind me, I seem tobe 5 years behind in the news!

Last edited by Xerxes on 04 Apr 2006 - 11:25

#1.3 LanMan874 on 04 Apr 2006 - 15:13

Yeh, i was wondering the same thing, as Virgin Mobile was planning to start up in South Africa as a 50/50 joint pertnership with South African mobile network operator Cell C.

#1.4 matthewfriedles on 05 Apr 2006 - 08:37

Virgin Mobile in Australia has already been bought out - by optus. Optus origionally owned 49%(im pretty sure) and now own the whole company. The will keep the Virgin brand. This occured a few months ago.

Source

#2 axious on 04 Apr 2006 - 10:47

http://news.bbc.co.uk/1/hi/business/4874694.stm

(2 replies) #3 Cy Bones on 04 Apr 2006 - 11:34

The BBC article provides a lot more detail but still does not confirm if this is only Virgin Mobile in the UK. Unless they are all managed in the UK then I would guess they are not included:
"NTL has also persuaded Virgin Mobile management to stay on and run the business, which will continue to be based in the UK."

Another point of interest from the BBC article is use of the Virgin brand - could we see a rebranding of NTL and Telewest?
"NTL has also agreed an exclusive 30-year licence for the Virgin brand and believes this will help attract and retain customers
It will have to pay 0.25% royalties on its revenue for three decades - with a minimum annual payment of £8.5m - to Virgin Enterprises for the use of the brand name created by Sir Richard."
This would definatley help in the competition with BSkyB... As long as they can sort out their customer service issues I am sure they will do well.

#3.1 ckempo on 04 Apr 2006 - 12:26

"As long as they can sort out their customer service issues I am sure they will do well."

This is the biggest problem for NTL. I'm a Virgin Mobile UK user and I'll be gutted if the service drops after this.

#3.2 bytefire on 04 Apr 2006 - 20:42

Part of the aggrement to let NTL Telewest use the Virgin name is that they must sort there customer service problems first.

#4 Fubar on 04 Apr 2006 - 14:04

good , now along with telewest and ntl merging and now this , things are only going to get better with branson on the board, will be very intresting to see what happens in the future

#5 madkingsoup on 04 Apr 2006 - 21:50

The Register has a bit more - suggestions that Branson won't let NTL use tyhe Virgin name till the CS issues are fixed:
http://www.theregister.co.uk/2006/04/04/virgin_ntl_customer/

Odd though. Big company buys smaller yet better company. Biggie adopts Smallie's management, customer service ideals, and name for the next 30 years.
Exactly who is taking over who here?

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NTL Purchases Virgin Mobile

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