These speculations were at fever pitch more than a year ago, but this BW story now says timing might be good for Virgin Mobile USA owners to take it public. After a bit of a subscriber slowdown in 2006, its growth is accelerating again, it says, as other youth MVNOs have either fallen by the wayside or are still very small. Besides, Sprint Nextel (joint owner, along with Virgin Group) could use the extra cash to fund an anticipated $8.5 billion in capital expenditures this year. The business has 4.6 million subscribers and became profitable on an operating basis last year.
The company refuses to speculate on any timing, if at all, but the story says that if VMUSA does go public, investors aren’t likely to look at it with the same starry eyes they might have a year ago…it began targeting 18- to 24-year-olds, it currently goes after a broader, 18- to 34-year-old demographic, so that might be a factor. Also, it is paying more attention to offering inexpensive SMS and early availability of night minutes, instead of hot new apps.
Again, it is a trial balloon of a story, so take it as such.