Bell Mobility buys full ownership of Virgin Mobile Canada
Bell Mobility has acquired an additional 50% stake in cellular service provider Virgin Mobile Canada for $142 million. The purchase gives Bell 100% ownership of Virgin. Bell has also signed an exclusive, long-term licensing agreement with the Virgin Group for the continued use of the Virgin Mobile brand in Canada. Virgin Mobile Canada will continue to operate independently, with its own branding and distribution channels, but Virgin and Bell will now share network infrastructure, handset acquisition and common distribution in retail locations such as The Source, which Bell is also in the process of acquiring. "This initiative will allow Bell Mobility to be uniquely flexible in the competitive wireless marketplace, maximizing network, handset, distribution and global roaming efficiencies, and enhancing the growth of the number one youth brand in Canadian wireless," said George Cope, president and CEO of Bell and BCE. Virgin Mobile Canada was formed in 2004 as a joint venture of Bell Mobility and the Virgin Group.