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Sprint will add Virgin Mobile USA to its Boost Mobile pre-paid offering

Sprint Nextel has announced that it is purchasing Virgin Mobile USA. Virgin runs a popular pre-paid mobile phone service in America and Sprint Nextel will add the service to its line already including Boost Mobile.

The agreement to buy Virgin Mobile USA will cost about $438 million including the value of Sprint's existing 13.1% share of Virgin Mobile USA. Sprint reports that as part of the deal it will retire all Virgin outstanding debt, equivalent to about $248 million of net cash and cash equivalents.

Sprint says that the purchase will strengthen its position in the growing pre-paid cellular segment and bring Virgin Mobile USA and Boost Mobile together under one umbrella. The Sprint Nextel pre-paid business will continue to serve customers each branch served before the purchase.

After the transaction closes, the prepaid business will be ran by Dan Schulman, the current CEO of Virgin Mobile USA, who will report directly to Sprint CEO Dan Hesse. Matt Carter will continue to lead Boost Mobile and will report to Dan Schulman.

Hesse said in a statement, "The acquisition of Virgin Mobile USA positions Sprint for even greater success in the prepaid wireless segment. Prepaid is growing at an unprecedented rate with consumers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand.

Schulman said, "Virgin Mobile USA redefined the U.S. prepaid segment when we launched seven years ago. Sprint is committed to growing its prepaid business and this transaction will provide us with the resources and opportunities to compete more aggressively, and strengthen our position in prepaid."

Public stock holders in Virgin Mobile USA will receive Sprint shares at a price equivalent to $5.50 per Virgin Mobile USA share. Sprint Nextel's Boost Mobile has proven to be popular with pre-paid customers in part due to deals like its recently announced $50 unlimited plan. It's not clear if Boost and Virgin will continue to operate under their existing names.

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RE: Doh!
By bighairycamel on 7/28/2009 5:34:50 PM , Rating: 2
I can't speak for Virgin in the US but I can speak for Sprint/Nextel which sucks fat hairy ones.

In my area of the midwest they are notorious for crappy signal and dropped calls. There are serviceless spots only 15 minutes from the city. Also their phones are crappy and the free ones they offer don't even begin to compare to the free ones AT&T and Verizon offer.

My biggest pet peave is their communist firmware. I can't send any form of picture/music/video via bluetooth to a sprint phone. I even tried to use my bluetooth PC adapter to send a simple .jpeg and it wouldn't let me... so I tried .gif.... nope.... .bmp....nope. With my AT&T phone I can access the file system via the PC adapter and send ANY file (I could in effect use it as a file storage). I love editing my MP3s so use as ringtones, plus it saves me a few bucks. Most likely Nextel/Sprint just locks that stuff out so you have to use their sprint store. The only thing bluetooth is good for on their phones is for a headset.

RE: Doh!
By RandomUsername3463 on 7/28/2009 5:52:36 PM , Rating: 3
My biggest pet peave is their communist firmware.

Just like Verizon and AT&T? Before I got my WinMobile phone, my Verizon phone was completely locked out. For a while there was a way to hack it with BitPIM, but after a firmware update they even closed that loophole.

FWIW Sprint service is just as good where I live as Verizon. It just depends where you are located...

RE: Doh!
By lagitup on 7/28/2009 6:13:42 PM , Rating: 2
I can't send any form of picture/music/video via bluetooth to a sprint phone.

Then you obviously haven't tried hard. My HTC Touch, err, I mean Sprint Touch can send and receive files over bluetooth, even sync on bluetooth.

In my area of the midwest they are notorious for crappy signal and dropped calls. There are serviceless spots only 15 minutes from the city.

Here along the I-5 corridor in Washington State, I have a hard time not getting strong EV-DO (2g) signal from Sprint. Many of my friends lose signal before I do when we go someplace remote.

Also their phones are crappy

Having fun up there on your soapbox?

RE: Doh!
By RjBass on 7/28/2009 6:16:15 PM , Rating: 2
Lol, you are not lying. If you go to downtown Kansas City Missouri and stand in front of the Sprint Arena, you are lucky you can get even get a signal at all. Even in Sprints home town their service sucks.

What tweeks me even more is that Spring can find 400 million to buy yet another company, but yet can't seem to find the money to keep from laying off hundreds of people at the Sprint campus in south Kansas City.

RE: Doh!
By zerocool84 on 7/28/2009 7:03:33 PM , Rating: 2
It's funny you say that cus it's widely known that Sprint has better coverage than AT&T and everyone knows AT&T sucks and so do many review sites. It really does depend on where you live.

RE: Doh!
By RjBass on 7/29/2009 11:56:43 AM , Rating: 2
But in Sprints home town? C'mon. Their service in Kansas City where they have their global HQ is terrible.

RE: Doh!
By Gio6518 on 7/28/2009 10:51:28 PM , Rating: 2
once again

i love my sprint nextel i get great service everywhere i go and cant beat their pricing, according to test done they've done pretty well, so ill stick to my $99 everything

AT&T's comparable iphone Pkg. $30 for iphone data, $99 unlimited calls, $10 for GPS, $20 unlimited text.($159.00)

verizon is $149.99 for unlimited everything calls, text data etc. etc. etc.

kinda funny how AT&T costs most had worst reliability in all cities tested, sprint was out on top barely following verizon.

"Folks that want porn can buy an Android phone." -- Steve Jobs
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