Virgin Mobile sells its Canadian operation 100% to Bell Canada

Bell Canada has announced that it has finished buying the 50% of Virgin Mobile Canada it didn’t already own. The acquisition includes long-term rights over the branding. The mobile operator will still operate independently, as its own company, but it is now an entirely Bell-owned subsidiary.

Virgin Mobile Canada will gain access to existing Bell Canada operations. Bell also announced a $335 million purchase of Canadian electronics store, The Source.  So Virgin Mobile will get in-store placement in The Source, as well as access to Bell’s 3G network and upcoming 4G network.

From the release:

George Cope, president and chief executive officer of Bell and BCE: “The Virgin Mobile Canada team has built a unique wireless brand with special appeal to young Canadians and a reputation for outstanding service right across the country. This acquisition aligns perfectly with Bell’s strategic imperative to Accelerate Wireless, and we look forward to assisting Virgin Mobile Canada in maximising the network, product, global roaming and distribution advantages that come with being part of the broader Bell organisation.”

What we think?

This is taking the Virgin business model to extremes, isn’t it? Virgin Mobile usually sets up joint-ventures in the countries in which it operates. It provides the brand, the accompanying operator provides the network. Now that Bell owns 100% of Virgin Mobile Canada and all its future prospects, the brand really is just that - a skin-deep brand. There’s nothing “Virgin” about this any more. You have to presume the $142-million price tag was worth it for Sir Richard.