Yesterday, Sprint announced that it had acquired Virgin Mobile USA. Virgin Mobile, a specialist in providing prepaid mobile service, was facing some financial distress recently, thus paving the way for parent company Virgin Group to offload the troubled asset to Sprint Nextel. Sprint, owner of the increasingly popular Boost Mobile, will now see its market share increase significantly, but still not within reach of Verizon and AT&T, the two largest carriers in the United States. Sprint executives explained that the purchase of Virgin Mobile is an attempt to infiltrate the prepaid market segment of the mobile industry. Prepaid mobile phones have seen a dramatic increase in sales since the downturn of the global economy. Virgin Group will still retain ownership of its mobile operations outside of the United States, while gaining ownership of some Sprint common stock as fallout of this acquisition. It remains to be seen if this move will benefit Sprint over the next few years as the carrier attempts resurgence in the American mobile market.
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