Virgin Mobile USA enters into service agreement with IBM

Telecomworldwire, July 4, 2008

TELECOMWORLDWIRE-4 July 2008-Virgin Mobile USA enters into service agreement with IBM(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Virgin Mobile USA Inc (NYSE:VM), a provider of prepaid and hybrid wireless plans, on Thursday (3 July) announced that the company has signed a services agreement for Information Technology (IT) operations and new applications development with information technology company IBM (NYSE:IBM).

The agreement will reportedly allow Virgin Mobile USA to enhance its technology capabilities and improve its product portfolio for new and existing customers using IBM's telecomms industry experience and IT resources.

Under the terms of the new services agreement, IBM will begin transitioning Virgin Mobile USA's existing IT infrastructure and application suite into its own environment. Simultaneously, and continuing over the course of the next five years, IBM will work with Virgin Mobile USA to develop new and differentiated wireless applications and service offerings. This specifically includes providing Virgin Mobile USA with data centre outsourcing and application management services including maintenance and development.

The company expects to realise IT-related operational cost savings over the next five years.

The transition of the company's existing IT infrastructure and application suite to IBM is expected to be completed by 31 December 2008.

Financial details of the agreement were not disclosed.

((Comments on this story may be sent to tww.feedback@m2.com))

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