HomeInsightsVirgin and T-Mobile make peace

    Virgin and T-Mobile make peace


    T-Mobile, Virgin Group and Virgin Mobile have settled all outstanding litigation, and established new agreements, including an enhanced telecoms supply agreement running for a minimum 10 years.

    Virgin is also acquiring T-Mobile’s stake in Virgin Mobile, although T-Mobile will have the right to receive 25% of any value over £550 million, up to a maximum payment of £100 million, in the event of any future sale or float of Virgin Mobile, within the next two and half years.
    The settlement also includes the end of the monthly marketing support contribution paid by T-Mobile. Virgin Mobile will also be able to receive inbound, as well as outbound, call revenues
    Brian McBride, managing director of T-Mobile UK, said, “This is a great deal for T-Mobile, for Virgin and for Virgin Mobile. It provides substantial benefits for all parties. It’s also been a pleasure dealing with the Virgin team.
    “Any disagreements of the past are well and truly behind us, and we all look forward to a long and mutually rewarding relationship.”
    Tom Alexander, chief executive of Virgin Mobile, said, “This is a new era for Virgin Mobile, one in which it will continue to thrive and prosper through its re-energised network partner and simpler corporate structure. We are delighted to have found a way forward which suits all parties, consigning the distractions of the past to history.”