Virgin Group is negotiating a purported $1bn mobile and internet services deal with Singapore Telecommunications' subsidiary, Sing Tel Mobile. Each side will take a 50% stake in the new venture, Virgin Mobile Asia. Talks are still in train and a definitive agreement is expected by August. On completion, both companies will contribute an initial tranche of $50m, with Virgin managing marketing, billing and customer service.
The plan is to launch services both in Hong Kong and South Korea by the first quarter of 2001, the first step in Virgin’s ambition to establish itself as a global consumer mobile player.
News source: BBC Online Business News (UK)