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Since the name became famous towards the close of the 20th century for it is Virgin Atlantic Airways and the Virgin label in the music recording industry, the name Virgin has become ubiquitous in a great deal of productions and services in the field of travel & leisure, health, amusement and ordinary lifestyle. It now has in regards to 400 companies under the Virgin Group, from cola drink brands to power utility firms, from airlines and travel agencies to hotels and car rental firms, from book publishing to a sperm bank and a power utility firm, you name it. Among mobile phone subscribers, it is name brings up another network option for them to subscribe to. Its Virgin Media operates Virgin Mobile that directly competes with the giants amidst mobile phone network carriers like Vodafone, O2, Orange and T-Mobile. An Old Business Model Made New But T-Mobile is more than just it is competitor. It’s a business collaborator of sorts borne by it is business model considered the primary of it is kind in the mobile telephone industry. T-Mobile provides the network infrastructure with Virgin supplying the name. The business is basically a subcontracting one and while mutual in just when it comes to any business out there, it took Sir Richard Branson to introduce the model in the mobile telephony markets that made a landmark for the company as the original virtual mobile phone operator in the UK and the world. That was in 1999. Going virtual as a business model is not altogether new as it is fundamentally a subcontracting model and Virgin acts more like a middleman. But it was new for the mobile telecoms industry then and is not something GSM operators One2One would pass up even if it is new owners Deutsche Telekoms would in the end sold their 50% stake in the Virgin Mobile joint venture to the Virgin Group. One2One was renamed T-Mobile UK but remained Virgin’s 2G/3G bandwidth provider to compete with it. The model didn’t escape other enterprisers and you now have innumerable virtual mobile phone operators around the world. You merely buy wholesale the bandwidth of current telco suppliers who are more than more than willing to trade wholesale at substantial discounts and like what Virgin does, rebrand and trade the service to it is subscribing markets. There’s no capital cost in setting up your own networks to recover and no lag times in commissioning networks so you may trade right away once the bandwidth is allotted for you. Because there’s no network ownership, there’s also no maintenance cost and instrumentation upgrading costs that will require another round of capitalization. The business flourishes in numerous countries where Virgin Mobile operates. In the US, Virgin gets the 2G/3G bandwidth from Sprint Nextel. In France, it gets the bandwidth it rebrands from Orange S.A. In Canada, it has Bell Mobility, South Africa has Cell C and in India, Tata Indicom furnishes the network bandwidth. In all these countries, syndication prepaid pay-as-you-go services is the norm. Post salaried option is offered to approved clients in the US, UK, South Africa, Canada and Australia. Its business model likewise opens up other chances like retail mobile phones and productions related to it is service packages like the China-made Huawei USB modem dongle for 3G access on you laptop PCs as portion of the 3G selective information plan packages it offers together with T-Mobile. |
