U.S. wireless service provider Sprint and U.K. conglomerate Virgin Group Ltd. tripled their bets on their U.S. joint venture, announcing Friday that each company will invest up to US$150 million in Virgin Mobile USA.
Virgin Mobile USA was announced in October with a $100 million combined investment from Sprint and Virgin. The companies intend to use Sprint's PCS cellular infrastructure to provide nationwide long-distance coverage using Virgin-branded phones. The venture targets 15- to 30-year-old consumers with pay-as-you-go phone service.
Friday, Sprint said it will fund the joint venture, based in San Francisco, with up to $150 million, most of which will be in the form of services. Virgin will fund up to $150 million in cash, according to the joint statement. Virgin Mobile USA has yet to begin offering services in the U.S.