Bell Mobility Buys Remaining 50% stake in Virgin Mobile Canada
May 7, 2009 10:33 AM | Virgin Mobile | Comments (0)
 While Virgin Mobile Canada will continue to operate independently with distinct branding and its own distribution channels, both Virgin Mobile Canada and Bell Mobility will realize enhanced operational efficiencies from shared network infrastructure, handset acquisition and common distribution in high-traffic retail locations such as The Source. |
On a per subscriber basis, the all-cash $142 million purchase price represents a lower cost of acquisition (COA) per subscriber than Bell Mobility's current COA average. The acquisition will have limited impact on Bell Wireless financials in 2009.
Under the terms of the licensing agreement, Bell Mobility retains long-term rights to the Virgin Mobile brand and the benefits associated with such a relationship with the Virgin Group. Virgin Mobile Canada was formed in 2004 as a Mobile Virtual Network Operator (MVNO) jointly owned by Bell Mobility and the Virgin Group. As the No. 1 mobile youth network, Virgin Mobile Canada offers both prepaid and postpaid wireless service options and has been awarded the highest customer satisfaction ratings by J.D. Power and Associates for four years in a row. For more information on Virgin Mobile Canada, please visit virginmobile.ca.
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