Wednesday, April 05, 2006

NTL Buys Virgin Mobile in Latest Convergence Play

"For a long time, convergence and all-in-one services were ideas that many people believed in even though they couldn't see it in the marketplace," telecom analyst Jeff Kagan told the E-Commerce Times. "Now we see a lot of carriers coming to the same point of being able to actually offer it." The stock-and-cash deal was valued at about US$1.67 billion, making it relatively small in comparison to some recent deals in the telecom space.

The price tag reflects the fact that Virgin Mobile does not operate its own wireless network but instead buys access on T-Mobile's network and re-sells it under the Virgin brand.

Read the Story Here

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