Virgin Mobile also will revise the terms of its network contract with Sprint Nextel and expects at least an 8 percent reduction in the effective cost per minute for it to use Sprint's network in 2009, with further reductions in the next three years. Sprint also will provide a $2.50 network usage credit to Virgin Mobile for each gross customer addition, capped at $10 million, effective Tuesday.
Friday, June 27, 2008
More Trouble for Sprint - Virgin Mobile Buys Helio
Another blow for Sprint. Virgin Mobile, one of Sprint's largest PCS resellers, is purchasing rival wireless provider Helio. The buy out will give Virgin Mobile access into the postpaid wireless market.
After losing two other major wholesale customers, Embarq and Qwest, Sprint looking at three years of falling per user revenues from one of their biggest clients isn't going to help the company's future outlook.