Sprint beat rivals including AT&T to supply the network for a Virgin-branded service based on Branson's mobile companies in Britain and Australia, the source said.
Branson hopes to break into the U.S. market, where only 40% of people have mobiles (compared with up to 70% in Europe), as he has succeeded in Britain and Australia. Branson has signed up more than 865,000 customers in Britain through a joint venture with Deutsche Telekom's One2One. In the U.S., Branson will be competing with six major nationwide mobile telecommunications brands.
According to the industry source, the 50-50 mobile venture hopes to stand out from the crowd by teaming up with U.S. consumer electronics retailer Best Buy, which will sell the service as Virgin's V-Shops in Britain have—selling mobile phones alongside CDs and videos.
"We're progressing with talks in the U.S. and we expect to be able to announce a deal soon," said a Virgin spokesman who would not confirm the deal.
Branson is investing an initial $13.82 million in the U.S. venture, the source said, which could eventually cost the partners $1 billion. The money was raised from a loan secured against Branson's 51% stake in Virgin Atlantic Airways.
THIS HITS PHOTO GALLERY IS WANDERING IN THE DESERT
Photographic proof of the weaselfest (4/15a)
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THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
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