Sprintï¿¼s purchase of Virgin Mobile USA is designed to boost the companyï¿¼s prepaid subscriber business, Boost Mobile. This business unit came along with Nextel, when Sprint acquired the wireless carrier in 2005. Unlike its core cellular business, Sprintï¿¼s prepaid wireless business has been experiencing steady growth. In fact, the business unit was expected to cross the 10 million customer mark later this year. Adding Virgin Mobile USAï¿¼s 4 million customers positions Sprint as leading supplier of prepaid wireless services. While the carrier is happy to garner such a market position, it does not mesh with the companyï¿¼s core business. The primary users of the companyï¿¼s prepaid services are adolescents, but the carrierï¿¼s core business comes from business customers.
So Sprintï¿¼s long term strategy remains scattershot. The carrier had been an early supporter of WiMAX technology but scaled back support for that emerging wireless network option. There has been talk about the company being acquired (T-Mobile has been mentioned as a possible candidate), but there has not been much merger activity recently because of the economic downturn. In sum, the Virgin Mobile USA purchase shored up one business unit but did little to assuage larger concerns small and medium businesses have about the company.