Sprint, Virgin create first U.S. MVNO

Sprint and the Virgin Group have agreed on the first mobile virtual network operator joint venture in the United States.

Virgin Mobile USA, which will use the Virgin Mobile brand and the Sprint PCS nationwide wireless network, will target the 15- to 30-year-old consumer market, providing all-inclusive, pay-as-you-go wireless communications services.

The new nationwide wireless operator intends to appeal to this age group by diminishing the responsibilities of monthly bills and credit applications. Products and services will include long-distance and nationwide coverage, as well as access to entertainment-focused, music-centric services.

Virgin Mobile USA expects to launch services in select markets and complete a nationwide rollout during the first half of 2002. Per the agreement, Sprint PCS and Virgin initially will have an equal interest in and mutual governance roles for Virgin Mobile USA. Sprint PCS will make a $50 million contribution of services to the joint venture, and Virgin will invest $50 million in cash.

--Kelly Carroll, staff writer