Industry sources report that US youth MVNOs Virgin and Helio may merge. With analysts citing the reseller market in the US as a “disaster”, not much investor goodwill is left on the table for these two MVNO’s long term prospects.
Both companies have experienced their share of problems. Last week, Virgin Mobile said it had added nearly 18,000 net new customers in the first quarter, a dramatic drop from the 310,000 customers it signed up in the first quarter a year ago. Its revenue fell 3.7% to $326.8 million, while net income plunged 75% as the company faces intense competition in the prepaid market.
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