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Tue July 28, 2009
Sprint To Acquire Virgin Mobile
Kansas City – In this recession pre-paid, the low end of the mobile phone market, is hot. Sprint established itself as a price leader in that segment early this year, coming out with its Boost, 50 dollar a month, unlimited voice plan. Virgin Mobile matched that. Now with Sprint taking over Virgin, the Overland Park based company will gain more than 5 million customers . But analyst Christopher King doesn't see a lot in the deal for Sprint, beyond that.
King: At the end of the day, it certainly raises more questions about what Sprint wants to be when it grows up.
King's point is that Sprint spends the bulk of its marketing budget promoting its high speed wireless offerings, and new i-phone alternative, the Palm Pre all stuff for the more lucrative, high end of the market.