To: limtex who wrote (106496 ) 10/8/2001 3:14:04 PM From: bruce_hamilton Read Replies (1) | Respond to of 152472 Limtex, Virgin/Sprint Virgin knows the youth market maybe they can help kick start the data market in the US. "The new venture targets 15-year-old to 30-year-old consumers. Virgin will sell digital phones with services like voicemail, messaging and games. The company will begin retail sales in Virgin Megastores in New York and Los Angeles next year, said John Tantum, a senior Virgin executive." I think the important news regarding the "Sprint, Virgin Group Form Wireless Joint Venture" is the fact that 3G CDMA 1x has given SPRINT the ability or capacity to allow these type of partnerships to take place. AWE doesn't have the capacity because GPRS will rob system capacity. VIRGIN has similar deals in England and when the system is built out in both countries they will most likely want their systems to be compatible to offer world wide long distance, email, chat, etc. So that means a UIM card or simply a multi mode CDMA/GSM chipset, when those are available, which would require all phones sold to Virgin in England to purchace QUALCOMM chipsets or at the very least the GSM guild may soon begin paying us royalties on all phones sold :-). Hey it's possible. I think this news exceeds the negative news regarding Nextel. Futhermore, When QUALCOMM comes out with QCHAT, Sprint and Verizon will be able to offer walki-talky like services and also faster and cheaper data than Nextel. Nextel can't lower prices so they better begin to sign up their existing customers to three year deals to lock them in........ Bruce Hamilton KANSAS CITY, Mo. (Reuters) - Sprint Corp. (FON.N) and Richard Branson's Virgin Group Ltd. (VA.UL) said on Friday they have formed a joint venture to offer prepaid wireless telecommunications services and handsets aimed at the youth market in the United States. In a deal expected since the companies began talks in June, Sprint, the No. 3 U.S. long-distance telephone company, beat rivals, including AT&T Corp. (T.N), to supply the U.S. network with a Virgin-branded service modeled after Virgin's wireless ventures in Britain and Australia. At the close of New York Stock Exchange trading, Sprint PCS Group gained 25 cents, or 0.87 percent, to $28.90, while Sprint long-distance closed flat, or $22.75. The new venture targets 15-year-old to 30-year-old consumers. Virgin will sell digital phones with services like voicemail, messaging and games. The company will begin retail sales in Virgin Megastores in New York and Los Angeles next year, said John Tantum, a senior Virgin executive. Most U.S. prepaid plans target people with credit problems, a different market, Tantum said. In comparison to Virgin's plans, they use analog phones and offer fewer services, he said, adding that they also tend not to be sold in locations where younger consumers shop. The deal is a good one for Sprint PCS, as its contribution is non-cash, it could start generating revenues in third-quarter 2002 and it faces a new market, Credit Lyonnais Securities Analyst Rick Grubbs said on Friday. However, it's difficult to determine the potential revenues and the venture is launching during an economic downturn, Grubbs said. Despite Virgin's new approach, the youth market is no different today than a year ago, he added. "The question still is who's going to pay for it," he said. "It's still going to be mom and pop." Sprint confirmed in mid-July that it was in talks with Britain's Virgin Group for the resale of its services. On Sept. 3, Virgin said it was close to signing a deal with Sprint to create a $4 billion mobile phone venture in the United States. British entrepreneur Branson wants to use the Virgin brand name -- already on Virgin Atlantic Airways, music shops and a cola drink -- to break into the relatively immature U.S. wireless market. Only about 40 percent of people in the United States have wireless telephones, compared with up to 70 percent in Europe. Under the deal, Sprint PCS (PCS.N) will contribute $50 million in services to the venture, called Virgin Mobile USA, and Virgin will contribute $50 million in cash. The venture will offer services and handsets under the Virgin Mobile brand, using Sprint PCS's wireless network. Sprint PCS and Virgin will initially have an equal share and mutual governance of Virgin Mobile USA. Virgin Mobile USA expects to launch its services in select markets and complete a nationwide rollout in the first half of 2002. Virgin has signed up more than 1.1 million customers in Britain through a joint venture with Deutsche Telekom AG's One2One, targeting the youth market that shops in Virgin record stores and drinks Virgin Cola, Tantum said. But Virgin has found in the past that its brand does not necessarily buy it success in the United States. It had a hard time launching Virgin Cola in America and will be competing with six major nationwide U.S. wireless brands.