Virgin Getting on with T-Mobile

The simmering row between T-Mobile and its joint venture in the UK with Virgin seems to be calming down following the appointment of a new managing director at T-Mobile. Virgin and T-Mobile have been in court on several occasions this year in a dispute over incoming call revenues and attempts by T-Mobile to terminate the joint venture.

Court action is still on the cards, although the Independent newspaper cited an unnamed source as saying "It is true that relations have dramatically improved. We are hopefully moving to an out-of-court settlement,"

Reports are also coming in that the two companies are looking to float the joint venture on the stock market in the first quarter of next year which could value the company at upwards of US$2 billion. The company is expected to have over 3 million subscribers by the end of this year.

Virgin Group also operates a 50:50 joint venture in the USA with SprintPCS and has previously said that it plans a partial floatation in 2006."

Posted to the site on 30th July 2003