|
30 January 2004 - T-Mobile, Virgin Group and Virgin
Mobile today announced a new future for Virgin Mobile,
the UK's fastest growing operator. The three organisations
have settled all outstanding litigation, and established
new agreements, paving the way for a new era in relations
between T-Mobile and Virgin Mobile.
The deal sees T-Mobile and Virgin Mobile secure an
enhanced telecoms supply agreement running for a minimum
10 years, which provides substantial benefits to both
companies. Features include:
· Virgin Mobile maintains its position in
voice and text services, with a long-term, non-exclusive
deal, including improved access to 2.5 and 3G services
· The end of the monthly Marketing Support
Contribution paid by
T-Mobile, and the introduction of Virgin Mobile receiving
inbound, as well as outbound, call revenues
Separately, Virgin Group is acquiring T-Mobile's stake
in Virgin Mobile. As part of the settlement, T-Mobile
will have the right to receive 25% of any value over
£550 million, up to a maximum payment of £100
million, in the event of any future value realisation
of Virgin Mobile, within the next two and half years.
The settlement has the full support of Virgin Mobile's
bank syndicate. All changes take immediate effect.
Brian McBride, managing director of T-Mobile UK, said:
"This is a great deal for T-Mobile, for Virgin
and for Virgin Mobile. It provides substantial benefits
for all parties. It's also been a pleasure dealing with
the Virgin team. Any disagreements of the past are well
and truly behind us, and we all look forward to a long
and mutually rewarding relationship. Underpinning this
is the quality of T-Mobile's network, as well as the
rapidly growing strength of our whole UK business."
Tom Alexander, chief executive of Virgin Mobile, said:
"This is a new era for Virgin Mobile, one in which
it will continue to thrive and prosper through its re-energised
network partner and simpler corporate structure. We
are delighted to have found a way forward which suits
all parties, consigning the distractions of the past
to history, and we are looking forward to working happily
with T-Mobile long into the future."
Sir Richard Branson, founder of the Virgin Group of
companies, said: "We are delighted not only to
have reached a settlement with T-Mobile but to have
mapped out a secure and exciting future, one which sees
us working more closely together. Virgin Mobile has
proved itself an exceptional company; it continues to
be ever more popular with British consumers; and it
has changed the UK mobile market for the better, despite
operating in one of the most competitive environments
in the world. This is an exciting beginning to 2004
for Virgin Mobile - and it's going to get even better."
Back
to News Reports
|
