Wifi Revolution

Virgin Mobile (News - Alert) USA, a provider of wireless services, recently entered into a services agreement with IBM to work together to develop IT operations and generate new applications

As per the agreement, Virgin Mobile USA will gain access to IBM's (News - Alert) telecommunication IT resources to improve its product range with new wireless and service offerings. With expectations of reducing its IT-related operational costs and increasing its capability to produce newer competitive products and services, Virgin Mobile USA has focused its new relationship with IBM on expansion and value creation.

"We have built our success as a customer-centric innovator, and always seek to enhance our product and service offerings," said Jonathan Marchbank, Chief Operations Officer, Virgin Mobile USA.

"These steps will continue to raise the standards in the prepaid market overall and allow us to stay current with, and ahead of, trends and evolutions in the overall wireless industry. With over 5 million customers, the scale we've achieved now puts us in a position to take advantage of IBM's proven best practices, scope and unparalleled experience in running and building IT infrastructure," Marchbank added.

According to the agreement, Virgin Mobile USA will transition its present IT infrastructure and application suite into IBM’s. This transition is expected to be completed by the end of 2008. Working together, both IBM and Virgin Mobile USA plan to develop new wireless applications and services over the next five years. Data center outsourcing and application management services in particular will be provided by IBM.

"The telecommunications industry must stay current with innovative packages and solutions that promote anywhere and anytime communication services such as instant messaging, photo sharing and GPS capabilities," said Don Lopes, IBM vice president, Telecommunications Industry. "IBM is excited to apply its telecommunications industry insight, business transformation expertise, and IT outsourcing best practices to enable Virgin Mobile USA to deliver next-generation mobile solutions and service to its customers," added Lopes.

The agreement will also see the transfer of more than 40 Virgin Mobile USA IT employees to IBM. In addition, selected employees from its California branch will be given a chance to relocate to its New Jersey headquarters.

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