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Cell phone trafficking operations siphon millions of dollars from the wireless industry and its customers every year. Until recently, little could be done to fight back, but a vigorous counter-attack that has yielded several victories in federal courts across the country is beginning to turn the tide and help the wireless industry put a stop to a spreading epidemic. Cell phone traffickers have created a complex network of individuals and companies in the U.S. and around the world that steal subsidies from wireless companies used to lower the cost of their phones for legitimate customers.

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The Prepaid Phone Trafficking Web of Crime

Virgin Mobile USA definitely walks to its own, very hip drumbeat. Big cell phone carriers such as AT&T and Verizon Wireless are famous for herding customers into long-term service contracts. Virgin specializes in prepaid plans that allow its customers — half of them under 35 — to pay as they go, by the minute or by the month. That difference is what distinguishes Virgin, CEO Dan Schulman says. It’s also what keeps Virgin on its toes. Because there’s no contract, there’s nothing to prevent people from leaving, Schulman says.

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Virgin Mobile: The Wireless Road Less Traveled

Virgin Mobile USA is buying Helio, a struggling cell phone carrier that was founded to bring the advanced features of South Korean phones to the U.S. market. Virgin Mobile said Friday it would pay $39 million in stock for Helio, which has 170,000 subscribers, down from nearly 200,000 at the beginning of the year. At the same time, British billionaire Richard Branson’s Virgin Group and SK Telecom, the South Korean carrier that is the majority owner of Helio, will each invest $25 million in Virgin Mobile. That will give SK Telecom a 17 percent stake in Virgin Mobile.

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Virgin Mobile Snatches Up Helio in $39M Deal

Virgin Mobile USA will roll out a new unlimited wireless calling plan next month in a bid to undercut similar unlimited plans from the big four wireless carriers — AT&T, Sprint, T-Mobile and Verizon. In a flurry of activity earlier this year, the big four in close succession announced unlimited voice calling plans for just under a $100 a month. Virgin Mobile will offer its similar “Totally Unlimited” calling plan for $79.99, which it positions as the “first unlimited nationwide calling plan without roaming charges or an annual contract that can be purchased by cash or credit.”

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Virgin Tailors Unlimited Plan for Big Talkers