In May, regulators approved Virgin Mobile’s plans to market cell phone plans in Brazil using Telefonica’s Brasil SA network, adding more competition to an already competitive communications market.
The local unit of Virgin Mobile Latin America, which is run by the Virgin Group, initially struck the deal back in January. The deal involved negotiating the plans to lease capacity from Telefonica. It is thought that operations will begin in early 2015.
Phil Wallace, chairman of the Virgin unit said in a recent interview that the company was aiming to target 15-30 year olds who had pre-paid plans. This particular strategy has already gained the company one million Latin American subscribers since Virgin began operating in Chile back in 2o12, arriving in Colombia last year.
Virgin is strategically launching its Brazilian venture just as the crowded wireless market slows down following a recent boom, when falling prices and levels of low unemployment fuelled service growth to over 270 million mobile connections in a country with less than 200 million people.
However, revenue growth in the last year has slowed down significantly thanks to tighter credit and decreasing consumer confidence, reinforcing expectations among Brazil’s four million mobile phone network providers.
In the next few years, Mr. Wallace said that he expects 10 to 15 per cent of Brazil’s mobile network subscribers will use ‘virtual operators’ such as Virgin Mobile who use third-party networks to sell plans under their own individual brands.
The company said that Virgin Mobile Latin America recently raised $86 million in capital and took out a credit service estimated at $42 million in order to start service in Brazil and Mexico, the latter of which will launch later this year.
If you wish to find out more about the countries where Virgin Mobile operates, call the Virgin Mobile customer service contact number.