Anti-trust body approves Sprint-Virgin merger

25 Aug 2009

Sprint Nextel has received anti-trust approval from the Federal Trade Commission (FTC) for its proposed takeover of Virgin Mobile USA. As reported by CommsUpdate on 29 July, Sprint had agreed to purchase the mobile virtual network operator (MVNO) and pre-paid specialist in a deal worth USD483 million. Dan Hesse, president of Sprint Nextel, said: ‘The acquisition of Virgin Mobile USA positions Sprint for even greater success in the pre-paid wireless segment.’ In recent years Sprint has seen its wireless customer base steadily decline from a peak of 54 million in June 2007 to 49 million at the end of March 2009. The takeover of Virgin would add approximately 5.25 million customers to its business. The transfer of international licences held by Virgin still requires further approval from the Federal Communications Commission (FCC).